Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF) reported its financial results for the second quarter ending June 30, 2022. Revenue increased 4.8% sequentially and 14.6% year-over-year to $254.3 million from last year’s $221.9 million in the same time period. This easily beat the Yahoo Finance average analyst estimate for sales of $248 million. GTI said that revenue growth was primarily driven by increased retail sales in New Jersey, reflecting the legalization of adult-use cannabis; increased retail sales in Illinois; 19 additional retail locations versus the second quarter last year, and increased traffic in the Company’s 77 open and operating retail stores.
Net income in the second quarter of 2022 was $24.4 million or $0.11 per basic and $0.10 per diluted share, compared to a net income of $22.1 million, or income of $0.10 per basic and diluted share in the prior year period. This also beat the analyst estimates for earnings of $0.04.
“We are pleased with our second quarter results, especially in this challenging economic environment. Five percent revenue growth and greater than 300 basis point improvement in Adjusted EBITDA margins over the previous quarter demonstrate the results of our focus. We continue to maintain a strong balance sheet, which gives us ample flexibility to support our growth initiatives,” said Green Thumb Founder, Chairman, and Chief Executive Officer Ben Kovler.
GTI said its second-quarter revenue included sales from 77 retail stores in the following states: California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Virginia. Retail revenue increased 11.7% quarter-over-quarter. The only weak spot for GTI was that same-store sales were down 1.5% on a base of 56 stores. Sequential quarter-over-quarter comparable sales were up 9.9% on a base of 73 stores.
The company opened one new retail store in Minnesota, RISE Mankato. Profits from the first day of sales were donated to Habitat for Humanity of Minnesota (Habitat Minnesota).
“Despite the macro and consumer headwinds, our team continued to execute and build momentum. The complexity in U.S. cannabis makes us work harder and smarter every day to create long-term value for all our stakeholders. We are confident in our strategy, we believe in our brands, and we are committed to promoting well-being through the power of cannabis for the American people,” concluded Kovler.