Green Thumb revenue rides 'tidal wave of demand' for weed

Green Thumb Industries

11/08/2021 21:03

By Arunima Kumar
    Aug 11 (Reuters) - U.S. cannabis producer Green Thumb
Industries Inc  GTII.CD  almost doubled its revenue in the
second quarter and exceeded estimates on Wednesday, as demand
soared for its pot-infused products and more people stepped into
its stores.
    Like the rest of the cannabis industry, Green Thumb has
benefited from prospects of federal marijuana legalization in
the United States, with its shares climbing nearly 31% this year
thanks to a surge in pot use during the pandemic era. 
    "The great American growth story in cannabis is happening
--the momentum is undeniable... there is still incredible
untapped potential in all of our operating regions, and we will
continue our strategy to invest in high-return initiatives,"
Chief Executive Officer Ben Kovler said in a statement.
    Headquartered in Chicago, Illinois, Green Thumb has 16
manufacturing facilities, licenses for 111 retail locations and
operations across 14 U.S. markets.
    Green Thumb's revenue rose to $221.9 million in the second
quarter ended June 30, beating a Refinitiv IBES estimate of
$207.25 million on the back of growth in its consumer packaged
goods and retail businesses in Illinois and Pennsylvania.
    "The fundamental driver here is a tidal wave of demand... at
the core here, Americans are going to choose cannabis for
wellbeing," Kovler said in call to Reuters.
   Green Thumb, which owns the Rise dispensary chains, said
retail revenue increased 15% sequentially.
    Net income attributable to the company was $22.1 million, or
$0.10 per share, compared with a net loss of $12.9 million, or
$0.06 per share, in the prior year. It was Green Thumb's fourth
consecutive quarter of positive net income.

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