Green Thumb Industries Inc. (CSE:GTII) (OTCQX:GTBIF) reported its financial results for the second quarter ended June 30, 2022.
Highlights for the second quarter and six months ended June 30, 2022:
- Revenue increased 4.8% sequentially and 14.6% year-over-year to $254.3 million.
- First half 2022 revenue increased 19.4% to $496.9 million compared to the first half of 2021.
- Eighth consecutive quarter of positive GAAP net income, delivering $24.4 million or $0.11 per basic and $0.10 per diluted share.
- Adjusted Operating EBITDA grew 17.4% sequentially to $78.7 million or 31.0% of revenue. Cash flow from operations of $39.9 million year-to-date.
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“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,” said Ben Kovler, Green Thumb founder, chairman and CEO. “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."
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Second Quarter 2022 Financial Overview
Total revenue for the second quarter 2022 was $254.3 million, up 4.8% sequentially and up 14.6% from $221.9 million in the prior year period. 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 second quarter last year, and increased traffic in the Company’s 77 open and operating retail stores.
All 15 of Green Thumb’s state markets contributed to second-quarter revenue: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Virginia. The Company continued to invest in expanding its cultivation and manufacturing capabilities across its footprint.
Gross profit for the second quarter 2022 was $125.8 million or 49.5% of revenue compared to $122.9 million or 55.4% of revenue year-over-year. Gross profit performance was driven by increased sales in the Company’s retail business, new store openings, New Jersey adult-use sales and continued growth in the Illinois market.
Total selling, general and administrative expenses for the second quarter were $63.5 million or 25.0% of revenue, compared to $72.1 million or 32.5% of revenue for the second quarter 2021. The decrease in total expenses primarily reflected a non-cash reduction in acquisition-related contingent liabilities.
Net income attributable to the Company for the second quarter 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.
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Green Thumb At Benzinga Cannabis Capital Conference
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Why not come and meet Green Thumb's Wendy Berger, a member of the board of directors who will be a keynote speaker at the Benzinga Cannabis Capital Conference on Sept. 13-14 in Chicago?
Get your conference tickets HERE and stay with us at the historic Palmer House by reserving your room HERE.
