Verano Reports 2023 Restated Financials

The TDR Three Takeaways for Verano

  1. Verano achieved a record $938 million revenue in 2023, demonstrating significant growth.
  2. Verano increased its 2023 net cash from operating activities by 16% to $110 million.
  3. Verano’s operational efficiency and expansions contributed to its 2023 performance.

Verano Holdings Corp. (CBOE CA:VRNO, OTC:VRNOF), a multi-state cannabis company, updated its financial results for the fourth quarter and full year ended December 31, 2023. The company recorded $938 million in revenue for the year, a 7% increase from the previous year. Additionally, Verano saw a 16% rise in net cash provided by operating activities, totaling $110 million. The company also achieved $73 million in free cash flow for 2023, aligning with its earlier financial estimates.

The financial update follows new information regarding the fair value of Verano’s Massachusetts cultivation facility, resulting in a $9 million fixed asset impairment. This adjustment affected net income and certain financial ratios but did not significantly impact Verano’s overall financial stability.

For the fourth quarter of 2023, Verano posted $237 million in revenues, a 5% increase year-over-year and a slight decrease from the previous quarter. The company’s gross profit was $118 million, or 50% of revenue, showing a strong profit margin that reflects efficient operations and a strong product mix. However, the quarter reported a net loss of $77 million, or -33% of revenue, mainly due to the impairment charge. Adjusted EBITDA for the quarter was $73 million, or 31% of revenue, indicating solid profitability and cash generation.

In 2023, Verano expanded its market presence and product offerings. The company opened new dispensaries in key markets like Florida, Pennsylvania, and Connecticut, strengthening its industry position. Verano also introduced new product lines and strategic initiatives to improve market share and consumer engagement.

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