Band Arunima Kumar
March 1 (Reuters) – US cannabis company Green Thumb Industries Inc’s GTII.CD Fourth-quarter revenue beat estimates on Tuesday with a 37.4% jump, supported by growth in its consumer packaged goods and retail businesses.
The cannabis industry has seen a sales boom during the pandemic as people turn to marijuana for relaxation and entertainment.
Wider distribution of Green Thumb-branded products, new store openings, acquired stores and increased retail store traffic all contributed to year-over-year performance, the company said.
“We are seeing continued strong demand for Rythm flower, our flagship indoor premium flower, but essentially the whole pie is turning into this massive demand across all categories,” chief executive Ben Kovler told Reuters in an interview.
The Company’s retail revenue in the quarter increased sequentially by 8% quarter-over-quarter, driven by revenue from newly acquired stores and increased foot traffic at established stores.
Chicago-based Green Thumb’s revenue reached $243.6 million in the fourth quarter ended Dec. 31, beating analysts’ average estimate of $237.7 million, according to Refinitiv IBES.
Net income attributable to the company rose 1.5% to $22.8 million, or 10 cents per share.
Analysts had expected the company to post earnings of 7 cents per share, according to Refinitiv IBES.
Founded in 2014, Green Thumb operates in 15 U.S. markets, with 17 manufacturing facilities and 75 retail outlets open.
(Reporting by Arunima Kumar and Rithika Krishna in Bengaluru; Editing by Devika Syamnath and Krishna Chandra Eluri)
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