Verano Holdings (CSE: VRNO) has saw its revenue growth flatline in the fourth quarter, with the company reporting this morning that the quarter saw a 1% decline in net revenue versus the third quarter.
Revenue overall came in at $225.9 million, down 1% from the $227.6 million reported in the third quarter, but up 7% from the $211.4 million reported in the fourth quarter of 2021. The year over year growth was attributed to success in the New Jersey market, as well as store growth in Florida.
Gross profit however declined rather substantially, falling to $103.3 million in Q4, a 16% decline from the third quarter and a 5% decline from a year ago, with the poor performance blamed on discounting and cost increases from expansion. The figure represents 46% of revenue, down from 54% in the prior quarter.
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After SG&A expenses of $81.0 million, and impairments to goodwill of $113.0 million and impairments to intangibles of $116.2 million, the firm reported an operating loss of $207.0 million, leading to an overall net loss of $216.1 million, versus a loss of $43.0 million in the prior quarter and a loss of $7.4 million in the year ago period. Adjusted EBITDA meanwhile came in at $78.7 million.
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On a full year basis, the company saw revenues increase 19% to $879.4 million, with gross profits of $423.1 million. SG&A expenses amounted to $356.6 million, and after the aforementioned impairments, the firm reported an operating loss of $161.1 million and a net loss of $269.2 million, versus a loss of $57.5 million in the prior year.
Adjusted EBITDA for the full fiscal year meanwhile was reported at $323.6 million.
In terms of cash, the firm finished the year off with $84.9 million in cash and cash equivalents, down from $99.1 million at the start of the year.
Verano Holdings last traded at $3.81 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. 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.
