Green Thumb Industries Reports Second Quarter 2024 Results
CHICAGO and VANCOUVER, British Columbia, Aug. 05, 2024 (GLOBE NEWSWIRE) — Green Thumb Industries Inc. (“Green Thumb” or the “Company”) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today reported its financial results for the quarter ended June 30, 2024. Financial results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and all currency is in U.S. dollars.
Highlights for the second quarter and six months ended June 30, 2024:
- Second quarter revenue of $280 million increased 11% year-over-year.
- Cash at quarter end totaled $196 million.
- Second quarter GAAP net income of $21 million or $0.09 per basic and diluted share.
- Second quarter Adjusted EBITDA of $94 million or 34% of revenue.
- Six months cash flow from operations of $104 million, net of $53 million of tax payments.Purchased 1,658,000 Subordinate Voting Shares (“Shares”) for a total of $20 million in the second quarter.
See definitions and reconciliation of non-GAAP measures elsewhere in this release.
Management Commentary
“In the second quarter, our team delivered impressive results including $280 million in revenue, Adjusted EBITDA of $94 million or 34% of revenue, and $20 million of cash flow from operations. Importantly, that cash flow from operations is after paying over $50 million in taxes in the quarter. Green Thumb continues to gain market share in U.S. cannabis, and we are in a strong position to further our mission of creating brands Americans love in the back half of 2024 and beyond,” said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. “From a regulatory standpoint, we have no clarity on the rescheduling process as the DEA continues to drag its feet. We urge them to do their job. Separate, but related, we continue to pay our taxes (subject to 280E) while at the same time generating cash and maintaining a balance sheet that supports long-term value creation for shareholders. As we begin our second decade as a Company, we are more confident in the future for cannabis in America. It’s Still Day One.”
Green Thumb President Anthony Georgiadis added, “We are incredibly proud of our team and the results they delivered this quarter. Our consistent focus on execution, the quality of our products and our brands is a winning combination for Green Thumb. We have more excitement ahead as we look forward to making history tomorrow in Ohio.”
Second Quarter 2024 Financial Overview
Total revenue for the second quarter 2024 was $280.1 million, up 11.0% from the prior year period. Revenue growth in the second quarter was primarily driven by increased retail and consumer packaged goods sales in 11 incremental RISE Dispensaries since the prior year period, as well as the addition of adult-use sales in Maryland. The increase was partially offset by continued price compression.
Overall retail revenue increased 8.8% versus the second quarter of 2023. Second quarter 2024 comparable sales (stores open at least 12 months) increased 2.3% versus the prior year on a base of 76 stores. Consumer Packaged Goods gross revenue increased 17.3% versus the second quarter of 2023.
Gross profit for the second quarter 2024 was $150.5 million or 53.7% of revenue compared to $125.3 million or 49.6% of revenue year-over-year. The Company was able to offset price compression headwinds through operational efficiencies as well as an increase in Consumer Packaged Goods sales through Green Thumb-owned retail stores.
Total selling, general and administrative expenses for the second quarter were $96.5 million or 34.4% of revenue, compared to $84.2 million or 33.4% of revenue for the second quarter 2023. The increase in total expenses was primarily due to increased costs associated with opening new stores and employee salaries during the current period.
Net income attributable to the Company for the second quarter 2024 was $20.7 million or $0.09 per basic and diluted share, compared to net income of $13.4 million, or income of $0.05 per basic and diluted share in the prior year period.
In the second quarter 2024, EBITDA was $82.0 million or 29.3% of revenue versus $65.3 million or 25.9% of revenue for the comparable period. Adjusted EBITDA, which excluded non-cash stock-based compensation of $8.9 million and other non-operating adjustments of $2.9 million, was $93.8 million or 33.5% of revenue as compared to $75.8 million or 30.0% of revenue for the second quarter 2023.
For additional information on these non-GAAP financial measures, see below under “Non-GAAP Financial Information.”
