Green Thumb Reaches $1 Billion In Sales In 2022
March 7, 2023Chicago, Illinois-based Green Thumb Industries surpassed the billion-dollar mark in revenue last year, even as growth slowed in the fourth quarter. The drivers of that full-year revenue growth include the beginning of recreational sales in New Jersey as well as sales generated from acquisitions in 2021. For the final three months of the year, quarterly sales decreased 1% sequentially to $259 million, but they were up 6% from the same period a year earlier.
Green Thumb’s overall retail revenue grew 24.1% in 2022, driven by the opening of new locations. Comparable sales at established retail locations grew 3.4% year-over-year. Green Thumb managed a gross margin of $504 million last year, a slight decline from the year prior owing to price compression. With annual SG&A expenses of $294.4 million, the company reported net income of $12 million for 2022 and an adjusted operating EBITDA of $311.5 million, or 30.6% of revenue.
Green Thumb CEO Ben Kovler assailed the lack of federal legislation to legalize the well-established consumer cannabis category. “As a federally illegal business with limited access to capital, we remain focused on our cash position, while consistently paying interest and taxes on time,” he said. “The lack of progress regarding cannabis regulation from our elected officials in Congress is mind-numbing. The crippling tax burden continues to hurt new operators by greatly reducing their prospects for a profitable and sustainable cannabis business.
“While there is notable price compression in the market right now, units sold continues to climb, up 28% year-over-year according to BDSA, indicating that demand for cannabis products remains strong,” Kovler continued. “I am confident that Green Thumb has the right team, the right brands, and the right operational setup to navigate the middle innings of this industry and beyond.”—Danny Sullivan
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