Verano Reports 3% Revenue Decline YoY For Q1 Driven Primarily By Expected Declines In New Jersey Retail
Portfolio Pulse from Nina Zdinjak
Verano Holdings Corp. reported a 3% year-over-year revenue decline for Q1 2024, totaling $221 million, attributed mainly to expected drops in New Jersey retail, offset by strong wholesale performance. Despite the decline, the company exceeded its guidance and highlighted potential growth opportunities with upcoming legislative changes in key markets. Gross profit increased to $113 million, and the net loss improved to $5 million. The company anticipates flat to low single-digit revenue growth for Q2 2024.

May 08, 2024 | 12:05 pm
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Verano Holdings Corp. experienced a slight revenue decline in Q1 2024 but remains optimistic about future growth due to legislative changes and strong wholesale performance.
The reported revenue decline is modest and was anticipated, especially given the context of expected drops in New Jersey retail. However, the company's optimism about future growth, driven by legislative changes and a strong wholesale segment, suggests a neutral to potentially positive outlook. The company's ability to exceed its guidance despite the decline and its strategic positioning in key markets could mitigate the negative impact of the revenue drop.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100