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Vireo Health Posts 62% Year-Over-Year Revenue Growth, Higher Net Loss

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Vireo Health Posts 62% Year-Over-Year Revenue Growth, Higher Net Loss

Cannabis company Vireo Health International, Inc. (CNSX: VREO, OTCQX: VREOF) released Thursday its fourth-quarter and fiscal year results for the period concluded Dec. 31, 2019

Vireo's 2019 Business Update

Fiscal year 2019 saw revenue growth of 62% on a year-over-year basis, reaching $30 million. The company recorded an impairment charge of $28.3 million due to unstable market valuations.

Vireo witnessed a net loss of $57 million in the same period versus a net loss of $3.1 million in fiscal 2018. The company posted an adjusted EBITDA of negative $16.7 million versus negative $983,518 in 2018.

In the last year, retail revenue increased by 34% year-over-year to $24.4 million.

Wholesale revenue was $5.6 million, up from $311,655 in 2018. 

In November 2019, Vireo appointed Canopy Growth Corp (NYSE: CGC) co-founder Bruce Linton as its executive chairman. Over the year, it has expanded its operational facilities by adding 180,000 square feet of cultivation and processing space. 

Vireo's Q4 Results 

The company's fourth-quarter revenue was $9 million, up by 60% year-over-year. 

The fourth-quarter net loss was $37.1 million versus a net loss of $1.2 million in the same quarter of 2018.

The company disclosed a negative adjusted EBITDA of $6.8 million for the same quarter versus an adjusted EBITDA loss of $1.4 million in the fourth quarter of 2018. 

The Minneapolis-based company operates across nine states and Puerto Rico. In 2020, Vireo is determined to boost its profits in its sixcore medical markets: Arizona, Minnesota, Maryland, New Mexico, New York, and Pennsylvania, Kyle Kingsley, M.D., the company's founder and CEO, said in a statement.

"As we enter fiscal year 2020, our recently completed private placement transaction provided capital to enable us to execute an operating strategy that seeks to yield positive cash flow beginning in the first half of calendar year 2021 by focusing on our core medical markets." 

The company anticipates its first quarter 2020 revenue will hit roughly $12.1 million for a year-over-year increase of 34%. 

The stock was down 0.57% at 44 cents at the time of publication Thursday. 

Courtesy photo. 

 

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