Green Thumb Industries Reports Q3 2023 Revenue Growth And 'Strong Profitability'

Green Thumb Industries Inc. GTII GTBIF, a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, announced its Q3 2023 financial results, which ended September 30, 2023.

Report Highlights

• Net Loss: In the third quarter of 2023, Green Thumb Industries Inc. reported a net income of $11 million, translating to $0.05 per basic and diluted share.
• Total Revenue: Total revenue for the third quarter of 2023 was $275.4 million, up 5.4% from the prior year period. This figure reflects a 9% increase compared to the previous quarter, primarily driven by increased sales in Maryland following the legalization of adult-use cannabis on July 1, 2023.
• Gross Profits and Gross Margin: Gross profit for Q3 2023 amounted to $133.8 million, accounting for 48.6% of total revenue compared to $131.2 million or 50.2% of revenue year-over-year. “The decrease in gross margin was primarily driven by price compression, while the increase in gross profit was directly attributed to the revenue increases described above,” reads the company’s official announcement.
• Adjusted EBITDA: Green Thumb Industries reported an adjusted EBITDA of $83 million for the third quarter, which accounts for approximately 30% of its total revenue “as compared to $84.5 million or 32.3% of revenue for the third quarter of 2022.”

“I’m pleased to report that our team delivered a great third quarter, including record revenue of $275 million and GAAP net income of $11 million or $0.05 per basic and diluted share. Adjusted EBITDA was $83 million or 30% of revenue. Nine-month cash flow from operations was $154 million and we ended the quarter with a strong balance sheet including $137 million in cash, net of the share buyback,” said Green Thumb founder, chairman, and CEO Ben Kovler.

Furthermore, the company repurchased $25 million worth of shares during the quarter, representing over 1% of shares outstanding.

"Our obsessive focus on operational efficiency, working capital management, and cash flow generation has allowed us to continue to generate strong revenue and profitability performance despite continued macro-economic and pricing headwinds in some of our markets,” concluded Green Thumb president Anthony Georgiadis.

Price Action: GTBIF shares were trading up 0.54% at $9.25 per share on Wednesday afternoon.

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