Green Thumb Q1 2024: Growth and Financial Highlights

The TDR Three Key Takeaways regarding Green Thumb Q1 2024:

  1. Green Thumb’s revenue growth hits $276 million, a 11% increase.
  2. Gross profit margin for Green Thumb improves to 52.5%.
  3. Company invests in growth via aggressive share repurchase.

– Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today announced its financial results for the first quarter ended March 31, 2024. The company recorded a significant increase in revenue and profitability, continuing its growth in the expanding cannabis market.

For the first quarter of 2024, Green Thumb reported revenue of $276 million, an 11% increase from $248.6 million in the same quarter the previous year. This growth was primarily driven by the expansion of retail operations, including the opening of 15 new RISE Dispensaries, and the start of adult-use cannabis sales in Maryland.

Net income for the quarter was $31 million, or $0.13 per basic and diluted share, marking a substantial 240% increase from the $9.1 million, or $0.04 per share reported in the first quarter of 2023. The company’s adjusted EBITDA also showed a healthy increase, reaching $91 million, or 33% of revenue, up 19% from the prior year‘s $76.5 million.

“I am pleased that our team delivered an outstanding quarter with revenue over $275 million, Adjusted EBITDA over $90 million, and cash flow from operations over $80 million,” said Ben Kovler, Founder, Chairman, and CEO of Green Thumb. He highlighted the strategic execution that has positioned the company for sustained growth: “We have the pieces in place to execute our strategy to create award-winning brands and build customer loyalty.”

The company’s gross profit for the quarter was reported at $144.9 million, or 52.5% of revenue, an improvement from $124.7 million or 50.2% of revenue in Q1 2023. This improvement in gross margin reflects efficient operations and scaling of the business.

Operating expenses were also optimized, with total selling, general, and administrative expenses decreasing to $74.3 million or 26.9% of revenue from $80.5 million or 32.4% of revenue in the corresponding quarter of the previous year.

On the balance sheet, Green Thumb finished the quarter with $419.7 million in current assets, including $223.9 million in cash and cash equivalents. Total debt was reported at $309.9 million, comprising long-term mortgages and senior debt.

In terms of capital allocation, Green Thumb continued its share repurchase program, buying back 1,067,000 shares for $13.6 million during the quarter. The company has $46.6 million remaining under its current repurchase authorization.

Anthony Georgiadis, President of Green Thumb, also commented on the company’s performance and outlook: “We are off to a great start to 2024. As we look ahead to the balance of the year, we will continue to invest in our people, our brands, opening new retail locations and producing the highest quality products.”

Green Thumb’s financial health and strategic expansions highlight its strength in the competitive cannabis market. The company is focused on enhancing shareholder value and maintaining growth throughout 2024 and beyond. We will continue to monitor their developments and provide updates on their ongoing progress.    Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.

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