Green Thumb Industries Inc., a U.S. cannabis producer, saw its third quarter revenue grow by almost 49%, beating estimates this Wednesday.
The reason for the jump is attributed to more distribution channels as well as higher traffic at its retail stores.
“American consumers are overwhelmingly choosing cannabis for well being. People are demanding this product and we only see that growing,” Chief Executive Officer Ben Kovler told Reuters.
According to Kovler, the U.S. cannabis industry is currently worth $24 billion in annual sales, in line with independent research data, and expects it could triple in size over the next decade as new states, products and consumers enter the market.
“We believe that American consumers will consume $80 billion of annual cannabis and that means that there’s at least $50 billion more of legal sales to come in the next decade,” Kovler said.
The company’s profit more than doubled to $20.2 million, or 8 cents per share, in the third quarter ended Sept. 30.
Revenue rose to $233.7 million from $157.1 million last year, narrowly beating a Refinitiv IBES estimate of $233.3 million.
The company has 16 manufacturing facilities, 66 retail outlets and operations across 14 U.S. states.
Retail revenue increased 7.3% sequentially, as it opened new stores and more people walked into the older ones.
