Verano Holdings Corp (CSE:VRNO, OTCQX:VRNOF) shares edged lower after the Chicago-based multi-state cannabis company released fourth quarter and full year 2022 financial results.
For the fourth quarter ended December 21, 2022, the company posted revenue of $225.9 million, up 7% from $211.4 million in the year-ago quarter but shy of the consensus analyst expectation of $227.2 million.
Verano said the increase was driven primarily by strength in adult-use sales in New Jersey, in addition to increased retail contributions from Florida store openings.
The company posted a net loss of $216 million for the quarter, which included a $229 million impairment charge primarily of intangible assets related to the Arizona cultivation license and Pennsylvania and Arizona retail reporting units, compared to a loss of $7.4 million in the same quarter in 2021.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $78.7 million compared to $81.6 million in the fourth quarter of 2021.
For the full-year 2022, the company achieved revenue of $879.4 million, up 19% from $737.9 million in 2021.
Its net loss grew from $57.5 million in 2021 to $269.2 million in 2022. Adjusted EBITDA was $323.6 million compared to $324.1 million in the previous year.
“I’m very proud of our results in 2022, highlighted by record revenue and one of the industry’s leading margin profiles, which demonstrate our continued execution in driving efficiencies across the business and positioning ourselves ahead of growth,” said Verano CEO George Archos.
“Since the end of 2021, we grew our retail footprint by adding more than 30 dispensaries across multiple core markets, significantly expanded our brand portfolio by launching a number of differentiated products that cater to a variety of consumers, celebrated the launch of adult-use sales across our East Coast footprint in New Jersey and Connecticut, refinanced debt in a rising rate environment to include optionality, and made strategic investments to drive greater efficiencies across the business.”
Verano shares had slipped 0.7% at US$2.85 on Thursday afternoon.
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