American cannabis chains
Green thumb industries
are leaving their best-known Canadian counterparts in the dust when it comes to selling weed.
Last week, Curaleaf (ticker: CURLF) secured its place as the world’s largest cannabis seller, reporting a near-tripling of sales in the December quarter. After Wednesday’s close, Green Thumb reported its own strong results, with sales for the December quarter more than doubling.
Although the over-the-counter stock of Green Thumb (GTBIF) has gained more than 40% this year, until the close of $ 35.63 on Wednesday, Canadian sellers
(TLRY) has seen its shares triple, even though Canadians are selling less cannabis in their country’s small market.
Pot’s illegality under US federal law prevents stocks like Green Thumb’s from major exchanges available to Canadians. But earlier this year, the Biden administration’s Securities and Exchange Commission let Green Thumb raise $ 156 million in the U.S. industry’s first recorded public offering. “Financial markets are waking up with the great story of the growth of American cannabis and the ‘green wave’ is gathering momentum,” Green Thumb CEO Ben Kovler said in Wednesday’s earnings release.
The Chicago-based company increased sales 134% year-over-year in the December quarter, to $ 177 million. And for the second quarter in a row, Green Thumb reported earnings according to generally accepted accounting principles, with December profit of $ 23 million, or 11 cents per share. A few other pot producers enjoy positive cash flow, but no GAAP profits. Green Thumb’s December results beat forecasts of analysts polled by FactSet, who predicted earnings of 6 cents a share on $ 167 million in sales.
For the year 2020, Green Thumb’s sales were $ 557 million, with GAAP profit of $ 15 million, or 7 cents per share. His cash profit for the year was $ 180 million, or 32% of revenue.
It’s a young industry. Green Thumb ended the year with 51 stores in 10 states. Comparable store sales in the December quarter were up 6% from September and 60% from a year ago.
Green Thumb “once again showed its best-in-class execution with another strong quarterly beat,” Stifel analyst Andrew Partheniou wrote in a note Wednesday night.
Write to Bill Alpert at [email protected]