U.S. cannabis producer Green Thumb beats revenue estimates

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Aug 11 - U.S. cannabis producer Green Thumb Industries Inc exceeded its revenue in the second quarter almost doubled its revenues and increased estimates on Wednesday as demand soared for its pot-infused products and more people stepped into its stores.

Like the rest of the cannabis industry, Green Thumb has benefited from prospects for federal marijuana legalization in the United States, with its shares rising nearly 31% this year thanks to a surge in pot use during the pandemic era.

The great American growth story in cannabis is happening - the momentum is untapped and there is still immense untapped potential in all of our operating regions, and we will continue our strategy to invest in high-return initiatives, Chief Executive Officer Ben Kovler said in a statement.

Green Thumb is located in Chicago, Illinois. The company has 16 manufacturing facilities, operates 111 retail locations and uses across 14 U.S. markets.

Green Thumb's revenue rose to $221.9 million in the second quarter ended June 30, beating a Refinitiv IBES estimate of $207.25 million on the back of growth in its consumer packaged goods and retail businesses in Illinois and Pennsylvania.

The fundamental driver here is a tidal wave of demand. at the core there, Americans are going to choose cannabis for wellbeing, Kovler said in a Reuters call. Green Thumb, which owns the Rise dispensary chains, said retail revenue increased sequentially 15%.

Net income attributable to the company was $22.1 million, or $0.10 per share, compared with a net loss of $12.9 million, or $0.06 per share in the prior year. It was the fourth consecutive quarter of positive net income for Green Thumb.