Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced its unaudited financial results for the second quarter ended June 30, 2022, with revenue increasing 12% to $224 million versus the same time period in 2021. This was slightly higher than the Yahoo Finance average analyst estimate for Verano revenues of C$280 million, which when roughly converted to today’s exchange is $217 million and higher than the first quarter’s revenues of $202 million. The company also trimmed its net losses to $10 million from last year’s net loss of $30 million.
“I am very proud of our performance this quarter alongside the strategic investments we made to ensure our high operational standards touch every part of our business,” said George Archos, Verano Founder, and Chief Executive Officer. “Despite ongoing macroeconomic headwinds, we achieved a number of wins throughout the quarter, including the successful launch of adult-use sales in New Jersey, exceeding a milestone of operating more than 100 dispensaries following the opening of seven new stores in Florida, West Virginia and Pennsylvania, announced a partnership with Mission Green to advance cannabis clemency and social equity initiatives, and launched mobile applications and rewards programs for our flagship Zen Leaf and MÜV dispensaries. I am proud of what we have accomplished since going public last year and remain confident that the strategy and plans we have in place will drive long term, sustainable growth for Verano.”
Verano noted that it has surpassed the 50-store mark in the state of Florida. It has also started sales in the new market of New Jersey with locations in Elizabeth and Lawrence Townships. Following the close of the quarter, Verano maximized its New Jersey footprint with the start of adult-use sales at Zen Leaf Neptune on the Jersey Shore.
Also after the quarter closed Verano said it launched its signature flower branded products in four new core markets – Arizona, Florida, Massachusetts, and Pennsylvania. The company also announced the upcoming launch of Savvy in September 2022, a new brand featuring larger-format cannabis products that cater to more value-oriented patients and consumers, across seven core markets.
As of June 30, 2022, Verano said its current assets were $288 million, including cash and cash equivalents of $93 million. The company said it had working capital (deficit) of $(299) million and total debt, net of issuance costs, of $403 million.
In July, Verano told investors that it would have to restate its earnings due to accounting errors that were uncovered. The company’s Audit Committee determined that its tax expense for the first quarter 2022 report was overstated due to a clerical error in the effective tax rate calculation, and accordingly, the company’s tax obligation will be reduced.