Green Thumb Industries Generates $1B in Revenue for 2022, Posts Profit Despite Q4 Losses
LOS ANGELES– Green Thumb Industries Inc. a cannabis producer and retailer in the US, announced that it hit $1 billion in revenue for 2022, a year marked by growth and challenges in the cannabis industry. The company reported a 6% uptick in Q4 to the tune of $259 million, contributing to a nearly 14% increase in revenue for the year. Moreover, GTI was able to turn a profit for the year of $12 million.
Despite this success, the company still lost $51 million in Q4, primarily due to a one-time “non-cash impairment charge” from its business in Nevada. CEO Ben Kovler acknowledged the tough regulatory environment that cannabis companies are facing, especially as federal legalization remains elusive. “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,” 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 also acknowledged the “notable price compression” in the US cannabis market, which is impacting industry players. Despite the market pressure, GTI’s revenue continued to rise due to the launch of recreational marijuana sales in New Jersey, which started in April last year.
The company’s Q4 results are a stark contrast to the same quarter in 2021, when GTI posted a $22.8 million profit. Nevertheless, Kovler remains confident in GTI’s financial position, citing the company’s $178 million in cash reserves, which increased by $31 million in 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.”
Green Thumb Industries is one of the largest cannabis companies in the US, with operations in 13 states. The company operates under several brands, including Rhythm, Dogwalkers, and The Feel Collection.
(This information is primarily sourced from Reportlinker. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).
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