Multi-State Players Green Thumb, Cresco Labs On The Rise In Q3November 16, 2021
Chicago-based Cresco Labs and Green Thumb Industries each reported third-quarter earnings in recent days, with both companies continuing to improve on strong demand and expansion. For the three months ended September 30, Cresco Labs reported $215.5 million in revenue, up 2.6% over $210 million the previous quarter and up 40.6% from the same period last year. The company’s adjusted EBITDA also improved to $56.5 million, up from $45.5 million the previous quarter.
CEO Charlie Bachtell called the performance “a very strong start to the second half of the year. We closed a transformative acquisition in Massachusetts creating our third top-three market share in a billion-dollar market, we announced several new deals to drive market depth, and we made massive improvements in bottom-line profitability as infrastructure investments began to bear fruit.”
In addition to closing its $90 million transaction to acquire Cultivate in Massachusetts, Cresco also made inroads into Pennsylvania with its $90 million Cure Penn acquisition and $80 million Laurel Harvest deal, as well as into Maryland with its August Blair Wellness purchase. The company logged a gross profit margin of 50.3% for the quarter, a development that Cresco Labs affirmed will hold strong in the coming quarter.
At Green Thumb, net revenue rose to $233.7 million for the quarter, up 5% from $221.9 million the quarter before and up 48.7% from the same period last year. Adjusted operating EBITDA grew 2.4% sequentially and 52.6% year-over-year to $81.2 million, or 35% of revenue. Overall performance was driven by expanded distribution of Green Thumb’s products and increased traffic in the company’s 65 operational retail locations. It generated revenue in all 14 markets in which it operates and is continuing to expand cultivation of its brand products, particularly premium Rythm flower.
“Our third quarter results reflected continued execution on our long-term goal to be a brand leader in this rapidly emerging, high-growth consumer category,” said CEO Ben Kovler. “Green Thumb is laying tracks for strong growth in 2022, 2023 and beyond. Our net capital expenditures exceeded $70 million in the third quarter bringing year-to-date net capex to over $115 million. Today, the U.S. cannabis market is a $24 billion industry and we believe as new states, new products and new consumers come into the market, it can triple over the next decade.”—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.