Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) hit $1 billion in revenue for 2022, including a 6% uptick in the fourth quarter to the tune of $259 million, and even turned a profit for the year of $12 million.
But the company still lost $51 million in year’s final quarter, primarily due to a one-time “non-cash impairment charge” from its business in Nevada.
“As a federally illegal business with limited access to capital, we remain focused on our cash position, while consistently paying interest and taxes on time,” CEO Ben Kovler said in a press release. “The lack of progress regarding cannabis regulation from our elected officials in Congress is mind-numbing. The crippling tax burden continues to hurt new operators by greatly reducing their prospects for a profitable and sustainable cannabis business.”
Kovler added that there’s “notable price compression” going on in the U.S. cannabis market, but said offsetting that is the fact that sales continue to go up regularly.
Revenue was up almost 14% for the year and up 6% for the fourth quarter. Increases in the quarter were driven by the launch of recreational marijuana sales in New Jersey, which started in April last year.
The fourth-quarter results also are a stark contrast to the same quarter in 2021, when GTI posted a $22.8 million profit.
Still, Kovler said he’s comfortable with GTI’s position, since the business has $178 million in cash reserves, which is an increase of $31 million for the quarter.
“I am confident that Green Thumb has the right team, the right brands, and the right operational setup to navigate the middle innings of this industry and beyond,” Kovler said. “This financial strength provides for both optionality and durability going forward.”