Green Thumb Industries CEO Ben Kovler has voiced a grim outlook on the future of federal marijuana reform, criticizing government agencies and highlighting concerns over the Biden administration’s approach to cannabis policy.
Bleak Prospects for Federal Marijuana Reform
During a recent earnings call on February 26, Kovler expressed skepticism about significant policy changes, citing key appointments under the current administration.
“At the moment, it’s hard to think anything will fundamentally change given the new administration’s appointees who seem to be descendants of the ‘Just Say No’ campaign of the ’80s and early ’90s,” Kovler told analysts.
Criticism of Federal Agencies and DEA
Kovler specifically criticized Health Secretary Robert F. Kennedy Jr. for his shifting stance on cannabis policy. A recent report from MJBizDaily highlighted Kennedy’s shift towards deferring marijuana policy reform decisions to the U.S. Justice Department and the Drug Enforcement Administration (DEA), causing uncertainty regarding potential rescheduling.
“We think the DEA is corrupt and misguided and out to lunch,” Kovler stated bluntly. “It’s not a popular opinion, it’s controversial, but it guides how we allocate dollars. So being on an island away from our peers is welcome over here, no problem.”
Strong Financial Performance Despite Uncertainty
Despite concerns about regulatory hurdles, Green Thumb Industries reported record-breaking financial results for the fourth quarter and full year of 2024, driven by growth in both its retail and consumer packaged goods segments.
Q4 2024 Financial Highlights:
- Revenue: $294.3 million (5.8% increase year-over-year)
- Adjusted EBITDA: $97.8 million (33.2% of revenue), up from $90.8 million in Q4 2023
- Net Income: $12.7 million, a significant increase from $3.2 million in the same period of 2023
Full-Year 2024 Performance:
- Total Revenue: $1.1 billion (7.8% increase from 2023)
- Net Income: $73.1 million, more than doubling from $36.3 million in 2023
- New Store Openings: 10 new Rise stores launched in 2024
Resilience Amid Federal Inaction
While federal reform remains uncertain, Kovler reassured investors that Green Thumb Industries is prepared to thrive regardless of political developments.
“As we’ve said from the beginning, we have set ourselves up to succeed regardless of what does or does not happen at a federal level,” Kovler affirmed. “Our North Star continues to be the American consumer.”
Green Thumb’s stock is publicly traded on the Canadian Securities Exchange under GTII and on the over-the-counter markets under GTBIF.