Green Thumb profit rises as U.S. pot demand grows

Green Thumb Industries

04/05/2022 21:44

By Rithika  Krishna
    May 4 (Reuters) - Green Thumb Industries Inc  GTII.CD 
reported a surge in revenue and core profit on Wednesday, as
increasing acceptance of marijuana in the United States helped
one of the country's largest weed producers attract more
customers.
    Eighteen states in the U.S. now allow the sale of cannabis
for recreational use, with New Jersey joining the list last
month and highlighting a surge in public support and demand for
the plant since the onset of the COVID-19 pandemic.
    "We now have a $25 billion legal (cannabis) industry and we
think over the next several years, or a decade, it will be a $75
billion to $100 billion industry," Green Thumb Chief Executive
Officer Ben Kovler told Reuters.
    "We don't see any other consumer industry with that kind of
tailwind at all," he said, calling the industry's outlook
"incredibly rosy".
    Green Thumb, one of the top three U.S. weed producers by
market value, posted a 25% increase in its first-quarter
revenue. Its core profit rose 16.5% to $77.5 million.
    The company saw increased traffic across its 76 open
cannabis retail stores, it said in a statement.
    "More Americans are buying products. We have new users as a
result of state policy, opening up of new markets, as well as
higher traffic and increasing user base across current markets,"
Kovler noted.
    Green Thumb said net income attributable to the company rose
to $28.9 million, or 12 cents per share, in the three months
ended March 31, compared to $10.4 million, or 5 cents, a year
ago.

 (Reporting by Rithika Krishna and Shariq Khan in Bengaluru;
Editing by Shailesh Kuber)
 ((Shariq.Khan@thomsonreuters.com; Twitter: @shariqrtrs;))