Green Thumb beats revenue estimates as U.S. cannabis demand grows (updated)

Green Thumb Industries

01/03/2022 14:16

(Compares estimates, adds retail revenue)
    By Arunima Kumar
    March 1 (Reuters) - U.S. cannabis firm Green Thumb
Industries Inc's  GTII.CD  fourth-quarter revenue on Tuesday
beat estimates with a 37.4% jump, bolstered by growth in its
consumer packaged goods and retail businesses.
    The cannabis industry saw a boom in sales during the
pandemic as people turned to marijuana for relaxation and
entertainment.
    Wider distribution of Green Thumb's branded products, new
store openings, acquired stores and increased traffic in retail
stores were all instrumental to the year-over-year performance,
the company said.
    "We see continued strong demand for Rythm flower, our
flagship indoor premium flower, but essentially the entire pie
is growing into this massive demand across really all
categories," Chief Executive Officer Ben Kovler told Reuters in
an interview.
    The company's retail revenue in the quarter increased
sequentially by 8% quarter-over-quarter, driven by revenue from
newly acquired stores and increased foot traffic in established
stores. 
    Chicago-based Green Thumb's revenue rose to $243.6 million
in the fourth quarter ended Dec. 31, surpassing analysts'
average estimate of $237.7 million, according to Refinitiv IBES.
   Net income attributable to the company rose 1.5% to $22.8
million, or 10 cents per share.
    Analysts expected the company to post a profit of 7 cents
per share, according to Refinitiv IBES. 
    Established in 2014, Green Thumb has operations across 15
U.S. markets, with 17 manufacturing facilities and 75 open
retail locations.    

 (Reporting by Arunima Kumar and Rithika Krishna in Bengaluru;
Editing by Devika Syamnath and Krishna Chandra Eluri)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
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