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Verano Holdings (VRNOF-3.46%) Corp. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing details a decline in revenues to $216,683,000 from $240,088,000 in the same quarter the previous year, attributed to increased competition and reduced product availability in certain markets.
Gross profit for the quarter was reported at $109,097,000, down from $133,220,000, with a gross profit margin decrease to 50.3% from 55.5% due to reduced revenues and non-cash impacts from acquisitions.
Net loss attributable to Verano Holdings Corp. and its subsidiaries was $42,567,000, compared to a net loss of $17,842,000 in the previous year, driven by decreased gross profit and increased selling, general, and administrative expenses.
Operating expenses increased to $92,327,000 from $86,316,000, reflecting higher salaries and benefits due to new store openings.
Income tax expense for the quarter was $45,478,000, slightly up from $44,797,000 in the previous year, with the effective tax rate significantly impacted by limitations under Section 280E of the Internal Revenue Code.
Cash provided by operating activities was $68,694,000, while cash used in investing and financing activities was $120,852,000 and $57,635,000, respectively.
Verano Holdings reported a working capital deficit of $113,654,000 as of September 30, 2024, primarily due to acquisition activity and capital expenditures.
The company continues to focus on expanding its footprint and increasing its retail and cultivation operations across multiple states.
The filing also includes updates on recent acquisitions, including those of Columbia Care Eastern Virginia LLC and Cannabist AZ, and details the financial impacts of these transactions.
Verano Holdings acknowledges the challenges posed by federal cannabis regulations and the competitive landscape in the U.S. cannabis industry.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Verano Holdings quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.