After the market closed on Wednesday, Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) reported its financial results for the first quarter ending March 31, 2022, with revenue rising 25% year-over-year to $243 million. This was flat compared Green Thumb’s fourth quarter of 2021, but it beat the Yahoo Finance average estimate for earnings of $236 million.
GTI also reported that its net income for the first quarter was $28.9 million or $0.12 per basic and diluted share, compared to a net income of $10.4 million, or $0.05 per basic and diluted share in the prior year. This beat the Yahoo Finance average analyst estimate for earnings of $0.06.
“Our team delivered solid first-quarter results with revenue increasing 25% over the prior-year quarter. We generated our seventh consecutive quarter of positive net income of $29 million, or $0.12 per share, and Adjusted Operating EBITDA of $67 million. For the ninth consecutive quarter, we delivered positive cash flow from operations, which was $55 million in the first quarter,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “We continue to have strong conviction in our core thesis and given the opportunity ahead, we will invest in markets where we know demand is coming. As I have said before, growth is not linear and there will be quarter-to-quarter fluctuations depending on when new markets open to adult-use sales as well as the timing of our infrastructure investments. Our preparations in New Jersey positioned us well for demand on Day One, and we feel confident in our playbook for future adult-use transitions.”
Same-Store Sales Fall
GTI said that retail revenue decreased by less than 1% quarter-over-quarter. Comparable sales growth (stores opened at least 12 months) were down 3% on a base of 51 stores. Sequential quarter-over-quarter comparable sales were down 6% on a base of 65 stores.
Still, the company continues to invest for the future even as it faces pricing pressures and rising costs.
In March, Green Thumb began sales of flower products in Minnesota. After the quarter ended, New Jersey’s Cannabis Regulatory Commission approved seven medical marijuana operators, including Green Thumb, to begin selling adult-use cannabis on April 21; RISE Bloomfield and RISE Paterson were among the first stores to begin adult-use sales on Day One.