Vireo Growth posts $5M loss in third quarter, looks to capitalize on Minnesota, hemp

Minnesota-based Vireo Growth (CSE: VREO) (OTCQX: VREOF) on Wednesday reported a net loss of $4.9 million for its third quarter, bringing its losses for the 2024 calendar year thus far to $12.3 million, despite increasing revenues.

Vireo, which was formerly known as Goodness Growth Holdings, pulled in $25.1 million in total revenue for the three months that ended Sept. 30, up year-over-year from $24.6 million, bringing its first nine months of revenue this year to $74.3 million, up $63.9 million from the same period in 2023.

The quarterly total didn’t include revenues from discontinued operations in New York, where Vireo pulled up stakes earlier this year, the company said.

CEO Amber Shimpa called the numbers a “solid performance across our core markets.”

“Our teams continue to focus on preparing for the launch of adult-use sales in Minnesota next year, and our recently announced $10 million financing commitment gives us additional flexibility to support this launch and continue executing,” Shimpa said. “We are continuing to build inventory ahead of the Minnesota adult-use launch which may impact velocity of inventory turns near-term.”

On the production front, Vireo’s harvest yields were up a third year-over-year, to 4,626 pounds from 3,485 pounds, the company reported.

Not only that, but Vireo is continuing to diversify by broadening its entrance into the national hemp market, Shimpa said, making the company part of a national trend of marijuana businesses branching into intoxicating hemp.

“We’re also continuing to support our recently launched hemp-derived beverages, which are helping seed our adult-use brands in the Minnesota market, and have expanded our distribution network with both local and national distributors of hemp and alcohol products,” Shimpa said.

At the end of September, Vireo had $193.8 million in total assets, including $7.2 million in cash, against $204.8 million in total liabilities.