Green Thumb Industries

Green Thumb Industries Inc. (CSE: GTII|OTCQX: GTBIF) reported its financial results last week for the fourth quarter (Q4) that ended December 31, 2023. Financial results are reported in U.S. dollars and are in comparison to those reported in Q3.

Q4 Financial Highlights

• Revenue: up 1.0% to $278.2M
• Gross Profit: up 6.7% to $142.7M
  • as a % of revenue: up to 51.3% from 48.6%
• SG&A Exp.:  up 8.8% to $92.3M
  • as a % of revenue: up to 33.2% from 30.8%
• Net Income (Loss): down 93.5% to $3.2M
• Net Income/Share: down to $0.01 from $0.05
• Adj. EBITDA: up 9.4% to $90.8M
  • as a % of revenue:  up to 32.6% from 30.1%
• Cash on Hand: up 18.4% to $162M

Q4 Operational Highlights

• commenced adult-use sales at its four Maryland RISE Dispensaries on July 1st,
• opened a RISE Dispensary Las Vegas on Craig Road on August 2nd, and
• opened a RISE Dispensary Fruitland Park in Florida on August 16th.
• now has 90 nationwide in 14 states

Management Commentary

Green Thumb Founder, Chairman, and Chief Executive Officer Ben Kovler, said:

• “...We delivered a strong fourth quarter, including record revenue of $278 million, record Adjusted EBITDA of $91 million, and full year 2023 cash flow from operations of $225 million—all the while investing over $200 million in capex to fuel future growth.
• We ended the year with a strong balance sheet including $162 million in cash, net of $65 million returned to shareholders via share buybacks and debt repurchases.
• ...Our Board of Directors authorized Green Thumb’s first share repurchase program to return capital to our valued shareholders.
• ...I am very optimistic [that we have the]... industry-leading brands...the best team in the business, a loyal and growing customer base, and the financial flexibility to keep riding the Green Wave."

Green Thumb President Anthony Georgiadis added:

• "We opened 15 new stores in 2023 bringing our total to 91 dispensaries across 14 states. We built and expanded our cultivation and production facilities to meet increased demand for both medical and adult-use cannabis in several of our markets.
• We developed new product types, such as Dogwalkers Show Dogs infused pre-rolls...
• We look forward to carrying this strong momentum into 2024.”

Stock Performance 

Green Thumb's stock price went up 1.4% in Q4, and a further 11.0% as of the end of February,  but has gone down 3.3% since then. It remains up 7.4% YTD.

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