Verano Holdings (CSE: VRNO) this morning reported its second quarter financial results, posting revenues of US$198.7 million and positive net income of $6.8 million. Once exchange rates are accounted for, the company managed to beat consensus estimates.
Revenues climbed to $198.7 million from that of $143.3 million in the second quarter. With a consensus estimate of C$228.56 million, the company managed to beat estimates with the Canadian equivalent of $249.9 million in Q2 revenues. With cost of sales of $98.6 million, the company posted a gross profit before fair value adjustments of $100.1 million.
Operational, expenses amounted to $57.6 million. This breaks down into SG&A of $53.3 million, along with $4.3 million in depreciation and amortization, resulting in income from operations of $18.3 million, once fair value adjustments for biological assets are accounted for.
With other expenses of $5.6 million, the company posted a net income of $6.8 million. Adjusted EBITDA meanwhile amounted to $81.5 million, which missed analyst estimates of US$97.45 million.
Cash and cash equivalents as of the period end amounted to $149.7 million.
In terms of guidance, the company indicated that it anticipates “exiting the year with an annual revenue run rate approaching $1.1 billion.”
Verano Holdings last traded at $19.00 on the CSE.
Information for this briefing was found via Sedar, and Verano Holdings. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.