Vireo Growth Inc., formerly known as Goodness Growth Holdings, (CSE:VREO) (OTCQX:VREOF) reported on Wednesday financial results for its third quarter ended Sept. 30, 2024.
"Our third quarter results reflect continued solid performance across our core markets, but as we discussed anticipating last quarter, year-over-year comparisons of financial performance are less significant now that we have passed the one-year anniversary of the launch of adult-use sales in Maryland," CEO Amber Shimpa said. "Our teams continue to focus on preparing for the launch of adult-use sales in Minnesota next year, and our recently announced $10.0 million financing commitment gives us additional flexibility to support this launch and continue executing our CREAM & Fire strategy."
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Q3 2024 Financial Highlights
- Revenue increased by 2% year-over-year to $25.2 million
- Revenue, excluding discontinued operations and the New York market, was up 6.2% year-over-year.
- Gross profit decreased by 6.6% year-over-year, reaching $12.3 million, with a gross margin of 49%, down from 53.5% in the prior year's quarter.
- Operating income was $3.9 million, down 34.4% compared to the previous year's third quarter.
- EBITDA dropped 19.4% to $5.7 million.
- Selling, general and administrative expenses increased by 2.4% year-over-year.
- Retail revenue grew 2% year-over-year and wholesale revenue saw a 24.4% increase over the same period.
- Vireo's operations in Maryland and Minnesota showed mixed results with Maryland achieving 12.1% year-over-year growth, while Minnesota saw a slight decline.
In November, Vireo secured a new $10 million convertible debt facility to support its upcoming adult-use sales launch in Minnesota and continued operations.
VREOF Price Action
Vireo's shares traded 5.15% lower at 4 cents per share after the market close on Thursday afternoon.
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