Earlier this week, Verano Holdings (CSE: VRNO) reported its first-quarter financial results. The company reported its numbers on a pro-forma consolidated basis, indicating revenue of $143 million, with gross profit coming in at $89 million, or a 62% margin. They had an adjusted EBITDA of $75 million or 52%, the highest in the industry.
The company currently has five analysts who have a weighted 12-month price target of C$40, a 68% upside. One analyst has a strong buy rating, while the other four have buy ratings. Beacon Securities has the highest price target at C$47, while the lowest currently sits at C$35
In Haywood’s note on the earnings, they reiterated their C$36 price target and buy rating on Verano. Neal Gilmer, their analyst, calls this quarter an impressive and strong quarter and writes, “management continues to deliver on operational efficiency.”
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Verano beat all of Haywood’s estimates, which you can find below. Gilmer says that the company generated ~69% of its revenue from retail and ~31% from wholesale, with Florida making the mix more heavily weighted towards retail. Wholesale sales were up 28% year over year, with same-store sales being up 90% year over year. Daily visits increased to 10k, up from 4k, while daily transactions were up 71% year over year.
Gilmer says that Verano exceeded all financial expectations for the second consecutive quarter and expects the company to continue on its M&A spree.
Below you can see the updated 2021 estimates.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
