Green Thumb Industries Reports Q1 2023 Financials: Revenue Up 2% YoY To $249M, Adjusted EBITDA?

Green Thumb Industries Inc. GTBIF reported its financial results for the first quarter that ended March 31, 2023.

“Green Thumb’s momentum continues to build in 2023, and I am incredibly proud of our team for their unwavering commitment to creating high-quality products and delivering positive experiences for our patients and consumers,” said Green Thumb's founder, chairman and CEO. 

Highlights For The First Quarter

• Revenue increased 2% year-over-year to $249 million.
• GAAP net income of $9 million or $0.04 per basic and diluted share.
• Adjusted EBITDA was $76 million or 31% of revenue.
• Cash flow from operations of $75 million in the first quarter.
• Cash at quarter end totaled $185 million, per a release.

First Quarter 2023 Financial Review: In the first quarter of 2023, total revenue for the company increased by 2.4% to $248.5 million, with retail revenue growing by 9.4%.

Gross profit was $124.7 million, or 50.2% of revenue, while net income was $9.1 million, or $0.04 per basic and diluted share.

Adjusted EBITDA increased to $76.2 million or 30.7% of revenue.

The company has a cash balance of $185.4 million and total debt of $277.8 million.

“(...) Our revenue increased 2% year-over-year to $249 million, despite continued price compression. Net income was $9 million, or $0.04 per diluted share. Adjusted EBITDA increased 14% to $76 million in the quarter, a greater than 300 basis point margin improvement to 30.7% year-over-year,” Kovler said.

“Our $185 million cash balance continues to give us the optionality to make investment decisions that will position us for the increasing demand for legal cannabis, a market estimated by analysts to grow to $75 billion over the next decade.”

Operational Highlights: GTI opened two new retail stores in April 2023; RISE New Hope in Minnesota, and RISE Grove City in Pennsylvania. Profits from the first day of sales were donated to charity.

“For the past few years, we have made sizeable investments to strengthen our infrastructure and expand our capacity rather than focus our dollars on significant M&A. These strategic decisions strengthen our balance sheet and will allow us to support additional retail locations in key markets this year,” Kovler concluded.

Additionally, Ethan Nadelmann, who has over 35 years of experience in cannabis policy reform and is the founder of both the Drug Policy Alliance and The Lindesmith Center, was appointed to the board of directors and joined the compensation committee of GTI on April 27, 2023.

Price Action: GTBIF shares closed on Wednesday, trading -0.61% lower at $7.38 per share.

Next: Green Thumb Industries Raises Wages By 50% After Teamster-Led 'Longest Strike' In Cannabis History

Image by Benzinga