Green Thumb sales surge on growing U.S. cannabis demand

Green Thumb Industries

10/11/2021 21:03

By Arunima Kumar
    Nov 10 (Reuters) - U.S. cannabis producer Green Thumb
Industries Inc's  GTII.CD  third-quarter revenue surged nearly
49% to beat estimates on Wednesday, thanks to more distribution
channels and higher traffic at its retail stores.
    A record number of Americans took to using cannabis products
for recreation during last year's months-long lockdowns and now,
retail stores are reaping the benefits as both new and old
customers visit after pandemic curbs ease. 
    "American consumers are overwhelmingly choosing cannabis for
well being. People are demanding this product and we only see
that growing," Chief Executive Officer Ben Kovler told Reuters
in an interview.
    Kovler estimated the U.S. cannabis industry is currently
worth $24 billion in annual sales, in line with independent
research data, and expects it could triple in size over the next
decade as new states, products and consumers enter the market.
    New marijuana sector-friendly policy changes, including
access to federal banking and expectations of federal
decriminalization of marijuana, have sparked optimism among
investors in the industry. 
    "We believe that American consumers will consume $80 billion
of annual cannabis and that means that there's at least $50
billion more of legal sales to come in the next decade," Kovler
said.
    Chicago-based Green Thumb's profit more than doubled to
$20.2 million, or 8 cents per share, in the third quarter ended
Sept. 30.     
    Revenue rose to $233.7 million from $157.1 million last
year, narrowly beating a Refinitiv IBES estimate of $233.3
million.
    Green Thumb, which has 16 manufacturing facilities, 66
retail outlets and operations across 14 U.S. states, said its
retail revenue increased 7.3% sequentially, as it opened new
stores and more people walked into the older ones.

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