Green Thumb Industries Reports Q2 2023 Financial Performance; Revenue Grows Sequentially

LOS ANGELES— Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), one of the prominent national cannabis consumer packaged goods companies and the proprietor of RISE Dispensaries, revealed its Q2 financial results for the period ending on June 30, 2023.

Key Figures for Q2 and First Half of 2023:

• Q2 revenue stood at $252 million, marking a 2% sequential increment.
• Revenue for the first half of 2023 climbed by 1% YoY, reaching $501 million.
• The company registered a GAAP net income of $13 million or $0.05 per share.
• Adjusted EBITDA hit $76 million, accounting for 30% of the revenue.
• Operational cash flow for the first six months was $93 million, adjusted for $52 million in tax expenses.
• By the end of the quarter, cash reserves totaled $149 million.
• Six new RISE retail locations commenced operations, with two in Pennsylvania, two in Virginia, and individual stores in Minnesota and Nevada. Additionally, on July 1, adult-use cannabis sales started in the company’s four Maryland RISE stores.

Note: For detailed definitions and non-GAAP measure reconciliations, refer to the provided release.

Ben Kovler, Founder, Chairman, and CEO of Green Thumb, commented on the results, saying, “We observed a marginal rise in Q2 revenue, reaching $252 million, and a GAAP net income of $13 million or $0.05 per share. The company’s Adjusted EBITDA was $76 million or 30% of the revenue. Notably, after the tax payments of $52 million, the cash flow from operations stood at $18 million. As we venture into the latter half of 2023, we’re confident about our strategic position and the team’s adeptness at implementing our long-term plan.”

Anthony Georgiadis, Green Thumb’s President, emphasized the company’s navigation skills in a challenging cannabis sector, saying, “Despite industry hurdles, Green Thumb has steadily marched toward profitability and robust operational cash flow. Over the past year, we’ve funneled approximately $240 million into capital investments to ensure the company remains resilient and productive across our wide array of operational states.”

A closer look at the financial data reveals:

• Q2 2023 revenue dipped by 1% YoY, primarily due to price compression. However, the dip was somewhat neutralized by growth in markets like New Jersey, Virginia, and Connecticut and revenue influx from new outlets.
• Retail revenue slipped by 2.4% compared to Q2 2022, with comparable sales at stores open for over a year declining by 3.3%. Conversely, Consumer Packaged Goods revenue surged by 12.8% compared to the same period last year.
• The company managed to counter price compression challenges, resulting in a gross profit of $125.3 million or 49.6% of revenue in Q2 2023, nearly on par with the previous year.

On the expenditure front:

• The Q2 2023 expenses related to selling, general, and administration amounted to $84.2 million or 33.4% of revenue. This marked an increase from $63.5 million or 25.0% of revenue in Q2 2022, mainly due to a one-time non-cash fair value credit linked to a past acquisition.

Looking at the liquidity aspect, as of June 30, 2023:

• Current assets stood at $341.3 million, inclusive of a cash and cash equivalent stack of $149.0 million.
• The company’s total outstanding debt was logged at $289.9 million.

During the second quarter, Green Thumb opened six retail locations under its RISE Dispensary brand. Each of these stores earmarked profits from their inaugural sales day for various charitable organizations. Moreover, post the quarter’s conclusion, the company flagged off its 84th nationwide retail store in Las Vegas.

In an effort to promote social justice and encourage equitable hiring practices, Green Thumb, in collaboration with 40 Tons, rolled out the sixth 40 Tons Level Up Career Conference & Business Expo in Chicago.