(Reuters) – U.S. cannabis firm Green Thumb Industries Inc posted an almost 90% jump in quarterly revenue on Wednesday that beat expectations, lifted by strong demand for its pot-infused products and higher traffic at its retail outlets.
The cannabis industry has enjoyed a surge in demand from customers staying at home during the pandemic. It is also benefiting from burgeoning investor interest as expectations rise that Democratic lawmakers will soon pass legislation granting the industry access to federal banking.
Green Thumb last week agreed to buy privately-owned Dharma Pharmaceuticals in Virginia, soon after the U.S. state legalized marijuana’s recreational use, expanding its footprint to 13 states.
“As the green wave continues to gain momentum, it is more important than ever to maintain our focus on strong execution and high-value capital allocation,” Chief Executive Officer Ben Kovler said in a statement.
Chicago-based Green Thumb’s revenue rose to $194.4 million in the first quarter ended March 31, beating a Refinitiv IBES estimate of $187.46 million, thanks to robust growth in its retail business in Illinois and Pennsylvania.
Net income attributable to the company was $10.4 million, or 5 cents per share, compared with a net loss of $4.2 million, or 2 cents per share, a year earlier.
(Reporting by Arunima Kumar in Bengaluru; Editing by Aditya Soni)