American cannabis companies have traded in the shadow of their Canadian counterparts whose stocks list on the big exchanges that shun U.S. operators because of the weed’s federal illegality here. But that hasn’t stopped American firms like Green Thumb Industries from outselling Canada’s better known companies.
After Thursday’s close, Chicago-based Green Thumb (ticker: GTBIF or GTII.Canada) reported March quarter sales of $103 million and cash earnings from operations of $25.5 million (excluding stock compensation). At the same time, the once-mighty Canadian producer Aurora Cannabis (ACB) reported quarterly revenue of just 76 million Canadian dollars (or US$54 million) and a cash loss on operations of C$51 million.
“Green Thumb continues to execute as we launched adult use sales in Illinois at the start of the year with great success,” said Green Thumb chief executive Ben Kovler in his company’s announcement.
Ahead of the report, Green Thumb stock closed at C$11.10 on the Canadian Securities Exchange, up 6% for the day.
The U.S. weed company’s revenue rose 35% from the December quarter. New locations helped but existing stores grew their same-store sales by 24% sequentially. Its earnings before interest, taxes, depreciation and amortization amounted to a 25% margin on sales. By standard accounting, Green Thumb still ran a small loss on the quarter of $4.2 million or 2 cents a share.
Green Thumb also far outsold other Canadian companies that still enjoy large stock market capitalizations. Tilray (TLRY) only managed March revenue of US$52 million, while losing $184 million. Cronos Group (CRON) sold a measly US$8 million, with an operating loss of $45 million.
