Green Thumb sales jump as New Jersey, Illinois enjoy the high

Green Thumb Industries

02/11/2022 20:02

Nov 2 (Reuters) - U.S. cannabis producer Green Thumb
Industries Inc  GTII.CD  posted higher third-quarter sales and
core profit on Wednesday, as strong demand in newly legalized
New Jersey and home market Illinois helped ward off some of the
hit from inflation.
    Industry experts believe New Jersey, which became the 19th
U.S. state to allow recreational pot sales, could rake in over
$2 billion in annual weed sales over the coming years.
 urn:newsml:reuters.com:*:nL2N2WJ1KL
    Support to federal marijuana reform from U.S. President Joe
Biden last month is expected to benefit cannabis products
further.  urn:newsml:reuters.com:*:nL1N31726A 
    "Even with new stores opening, we continue to ramp up
production (in New Jersey)," Green Thumb Chief Executive Ben
Kovler told Reuters, adding that the state "continues to show
strength" in terms of sales. 
    Green Thumb's revenue rose 3% in the three months ended
Sept. 30 from the previous quarter, partly helped by more people
visiting its 77 open stores across 15 U.S. states during the
quarter, the company said.
    However, same store sales - which accounts only for the
stores open for more than a year - declined 1.6% from the
previous quarter, as price cuts offset the advantage from
traffic and volume growth.
    Roaring inflation through the quarter ended Sept. 30 forced
customers to cut spending, especially on recreational products
including cannabis, and also hit companies with higher energy,
labour and raw materials costs.
    Green Thumb said its third-quarter net income fell to $9.8
million, or $0.04 per share, from $20.2 million, or $0.08 per
share, a year earlier.
    However, adjusted earnings before interest, tax,
depreciation and amortization (EBITDA) rose 4% to $84.5 million.
    "Inflation is real...However, with the measures we put in
place, we were able to control costs and increase margins,"
Kovler said.
 (Reporting by Ankit Kumar; Editing by Shinjini Ganguli)
 ((Ankit.Kumar2@thomsonreuters.com;))