[PRESS RELEASE] – CHICAGO and VANCOUVER, British Columbia, Feb. 26, 2025 – Green Thumb Industries Inc. reported the financial results of its quarter and year-end ended December 31st 2024. All financial information is reported using U.S. generally recognized accounting principles.
Highlights of the fourth quarter ended Dec. 31, 2024:
- Revenues of $294 millions, an increase by 6% from the previous year.
- Cash on hand at the quarter-end totaled 172 millions.
- GAAP Net Income of $13 Million or $0.05 per basic share and $0.04 for diluted shares.
- EBITDA adjusted to $98 millions or 33% revenue.
- Purchased approximately 1.2 millions of Subordinate Voting shares for $9.6 Million.
- Three RISE dispensaries opened in Florida, Minnesota and Nevada.
Highlights of the It is the right time to buy ended Dec. 31, 2024:
- The revenue of $1 billion is an increase of 8 percent over last year.
- Net of tax of $131 millions, cash flow generated from operations is $195 Million.
- GAAP Net Income of $73 Million or $0.31 for basic shares and $0.30 for diluted shares.
- EBITDA adjusted to $371m or 33 % of revenues, an increase of 14% year over year.
- Repurchased around 3.9 million Subordinate Voting Stocks of the Company for 43 million dollars.
- Opening of 10 RISE retail stores for 101 total locations across the country.
- Strengthen your balance sheet by ensuring a disciplined capital budget to help you grow.
This release contains definitions of non-GAAP metrics and a reconciliation.
Management Commentary
The Green Thumb Team delivered impressive results for 2024. We achieved a record-high revenue of $294m and an Adjusted EBITDA (Adjusted Earnings Before Interest and Taxes) of $98m in the fourth quarter. The full year cash flow was $195m, minus the $131m paid for taxes. Ben Kovler, founder of Green Thumb and Chairman and CEO said that the company ended with a solid balance sheet. This included $172 millions in cash following the repurchase of $43 million worth shares. Green Thumb’s position to take advantage of this market is excellent. “Demand in America for THC is high and Green Thumb will be able to meet it.” Alcohol consumption in America is not improving, with the Surgeon-General recently warning of its harmful effects and link to cancer. In contrast, cannabis—now available to more Americans in more locations than ever—is enhancing the well-being of tens of millions across the nation. In the past decade our team of exceptional professionals has delivered the best in class products and experiences for promoting well-being. And we’re excited by the exciting opportunity ahead.”
Green Thumb president Anthony Georgiadis commented, “We’re incredibly proud our team of the success we had together in 2024. Ten new RISE stores were opened, making our total 101 RISE outlets in 14 states. In order to elevate our brand’s awareness, we connected consumers with memorable and unique experiences. These included our partnership, which was the first of its kind, with The Salt Shed in Chicago, with New York City’s Magnolia Bakery as well as our collaboration, expanded, with Barstool Sports, an influential media company. “As we move forward, we’re confident that Green Thumb can achieve success by focusing on brand recognition, quality products, excellent operational performance, and thoughtful capital allocation.”
Four Quarters and Year-End 2024 Financial Review
In the last quarter, total revenues were $294.3 millions. That’s an increase of $5.8% over the same period in 2015. Total revenue for 2024 will increase 7.8%, to $1.1 Billion. Retail and consumer packaged goods contributed to the growth of revenue in the fourth-quarter.
The overall retail revenue increased by 0.5% in comparison to the fourth quarter 2023. For the entire year 2023 it increased 4.2%. This is due to the continued growth of our markets in New York, Florida, and Maryland. It also reflects the adult-use sale addition in Ohio and the additional 10 RISE dispensaries that have been opened since last year. In some markets, the increase in revenue was offset partially by continued price reductions. On a basis of 84 outlets, fourth quarter 2024 comparative sales (stores opened at least 12 months), decreased by 2.6% over the previous year.
Gross revenue from consumer packaged products increased 15.9% in comparison to 2023 and 19.9% against the same period last year. This growth is a result of continued growth of New York and New Jersey, and of the adult-use market in Ohio.
In the last quarter, gross profit was 158.1 millions dollars or 53.7%. That’s up from 142.7 millions dollars or 51.3% in the same period the year before. Gross profit for the year was 601.1 million dollars or 52.9% revenue. This is up from 5266.5 million dollars or 49.9% back in 2023. By reducing costs, the company has been able to counteract price-compression headwinds.
In the fourth quarter, total selling, administrative and general expenses were $101 millions or 34.3%, as compared with $92.3million or 33.2% in 2023. Total selling general and administrative expenditures for the entire year 2024 was $376.7m or 33.1%, as opposed to $341.9m or 32.4% in the preceding year.
In the preceding year’s fourth quarter, the net income that was attributable by the company to its shareholders was $3.2 millions, which is $0.01 for each basic share and per diluted one. The net profit for 2024 will be $73.1 million, or $0.31 each basic share and $0.30 per dilute share. This is an increase from the previous year’s $36.3 million.
EBITDA in the fourth quarter was $86.1m or 29.2% revenue compared to $77.8m or 28.3% revenue during the same period last year. The adjusted EBITDA (which excludes non-cash compensation for stock options of $9.6 millions and non-operating adjustments worth $2.1 million) was $97.8 or 33.2% revenue. This is up from $90.8 or 32.6% revenue in the fourth quarter of 2023. The adjusted EBITDA of the entire year 2024 was $371.3 millions or 32.7% revenue, up from $325.8million or 30.9% revenue for 2023.
See “Non GAAP Financial Information” for more information about the non-GAAP measures that were discussed.
Balance Sheets and Liquidity
As of Dec. 31, 2024, current assets were $403.9 million, including cash and cash equivalents of $171.7 million. Total debt was $255 million.
For the period ending Dec. 31, 2020, there were 239.1 and 236.8 million weighted average total shares.
Capital Allocation
The company board of directors approved on Sept. 13 2024 that up to $50,000,000 could be used for the repurchase of up to 10,573,860 Subordinate Voting shares from Sept. 23 2024 through Sept. 22 2025.
In the fourth quarter of 2009, the company purchased approximately 1.2 millions Subordinate Voting shares for $9.6 Million.
Fourth Quarter Business Growth 2024
In the fourth-quarter of 2024 the company plans to open three retail shops:
Non-GAAP Financial Information
In this press release, certain non GAAP financial measures are included as per the U.S. Securities and Exchange Commission. The financial schedules that accompany this release include a reconciliation of the non-GAAP measures with the closest comparable GAAP measure. These information are supplementary and should not be compared to any other measure of performance calculated in accordance with GAAP.
Definitions
EBITDA: Profit before taxes, interest and other expenses.
Adjusted EBITDA: Earnings prior to interest, tax, depreciation and amortization adjusted for non-cash compensation from stock, transactional expenses or one-time costs.