Cannabis giant Green Thumb Industries widens profit as store count climbs
Green Thumb Industries Reports 54% Q2 Earnings Surge with Expansion of Dispensary Network.
Second-quarter earnings jump 54% to $20.7 million as Chicago company adds 11 dispensaries to its network.
Green Thumb Industries Inc. continued its run as the most consistently profitable U.S. cannabis company with a 54% increase in second-quarter earnings as it expanded its retail network.
Green Thumb Industries GTBIF said Tuesday its net income for the three months ended June 30 rose to $20.7 million, or 9 cents a share, from $13.4 million, or 5 cents a share, in the year-ago quarter.
Green Thumb topped the FactSet consensus estimate of 6 cents a share.
Second-quarter revenue increased to $280.15 million from $252.4 million, ahead of the $277.2 million analyst estimate.
The Chicago company said it paid more than $50 million in taxes in the quarter, as cannabis companies continue to face the 280E tax law that prevents them from taking standard business tax deductions.
The 280E provision would no longer apply to cannabis companies if pot is reclassified to Schedule III of the U.S. Controlled Substance Act.
This process has been under way for about a year, with the Drug Enforcement Administration receiving more than 30,000 comments on its rescheduling proposal
Green Thumb Chief Executive Ben Kovler said the company has “no clarity on the rescheduling process as the DEA continues to drag its feet,” according to a prepared statement.
Kovler said the company remains “more confident in the future for cannabis in America. It’s Still Day One.”
During the quarter, Green Thumb Industries opened 11 dispensaries.
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It’s also participating in the launch of the adult-use cannabis market in Ohio on Tuesday.
During the second quarter, Green Thumb got a boost from the launch of the adult-use market in Maryland, but it faced price compression in some areas.
Green Thumb Industries stock is down 10.8% in 2024, compared to a 9% drop by the AdvisorShares Pure U.S. Cannabis ETF MSOS.
