Verano Q4 Dragged Down by Impairment Charges

The company reported a net loss totaling $216 million during the quarter.

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Veranoโ€™s fourth-quarter earnings were negatively impacted by substantial impairment charges.

The company reported a net loss totaling $216 million during the quarter, compared to a net loss of $7 million one year ago and a net loss of $43 million for third quarter 2022.

Verano said the wider loss was largely driven by a $229 million impairment charge, related to โ€œintangible assets related to the Arizona cultivation license and Pennsylvania and Arizona retail reporting units.โ€

Despite the loss, the company saw its quarterly revenue jump 7% to $226 million and its full-year revenue climb 19% to $879 million.

"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,โ€ said CEO George Archos.

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