Green Thumb Industries Inc. (GTBIF), a constituent in the Pure-Play Pot Stock Index, is a leading national cannabis consumer packaged goods company and owner of Rise™ retail stores. It reported its financial results for the third quarter ended September 30, 2020, yesterday as follows:

Q3 Financial Highlights (All results are presented in USD  and compared to the previous quarter.)

• Revenue: +31.3% to $157.1M
• Gross Margin: increased to 55.4% from 53.2%
• Net Profit (Loss): improved to $9.6M from $(12.9)M
  • Net Profit (Loss)/Share: improved to $0.04 from $(0.06)
• Adj. EBITDA: increased 50.2% to $53.2M
  • As a % of Revenue: increased to 33.9% from 29.6%
• SG&A: increased marginally to $49.7
  • As a % of Revenue: declined to 31.7% from 41.5%
• Cash on hand: $78.1M

Q3 Operational Highlights

• Grew gross branded product sales 32.6% with its family of consumer brands now produced, distributed, and available in 48 retail locations in 11 states with quarter-over-quarter comparable sales up 17.9% based on the 42 stores that were open for at least 12 months.
• Increased retail revenue sequentially by 27.9% quarter-over-quarter, primarily driven by increased foot traffic in established stores.
• Completed the initial phase of construction of its manufacturing facility in Oglesby, Illinois, and began producing and distributing its brand portfolio from that facility during the third quarter.
• Added branded-product production and distribution capabilities to two new markets, New Jersey and Ohio.
• Announced the launched a cannabis business incubator intended to help promote opportunity and success for new social equity entrepreneurs in Illinois.
• Partnered with the Last Prisoner Project (a coalition of cannabis industry leaders, executives, and artists dedicated to bringing restorative justice to the cannabis industry) on an integrated marketing campaign, including a short documentary (“Waiting to Breathe”) to raise awareness and funds for the project.

Management Commentary

Ben Kovler, founder and CEO said:

• “This was an excellent quarter as we:
  • delivered substantial revenue growth,
  • expanded gross margins,
  • expanded EBITDA margins quarter-over-quarter and
  • delivered positive net income for the first time. 
• We remain:
  • focused on distributing our consumer brands at scale and delivering superior consumer experiences while giving back to our communities,
  • bullish on our strategic position and the long-term prospects of our business,
  • focused  on providing the flexibility to capitalize on the growth opportunities ahead, and
  • laser-focused on delivering shareholder value in everything we do.”

Stock Performance

Green Thumb is one of the 13 pot stocks in the munKNEE Pot Stock Index of 25 pure-play constituents that is UP in price YTD (+108.3%). The positive trend continues with an increase in its stock price of 56.7% since the end of September and 29.0% so far in the month of November.

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