Green Thumb Industries Inc. (OTCMKTS:GTBIF) has reported a YoY revenue increase of 228% with a sequential-quarter revenue growing by 60% in Q2 2019. The growth is a result of the expansion of retail operations, acquisitions, and enhanced store traffic.
Expansion through acquisitions
The CEO and founder Ben Kovler stated that the company posted an impressive result in Q2 with record revenue. He said that their operating efficiencies, as well as execution of key acquisitions and accelerated store expansion, contributed greatly to the positive results. He added that the company’s focus is to optimize on retail and wholesale business as well as the integration of the company’s acquisitions to enhance operations.
The company’s product portfolio spans across CBD and THC product categories. The products are available in cannabis outlets across nine states, including the company’s Rise and Essence retail locations. In April the company launched a CBD-infused skincare line called Beboe Therapies.
GTI has been expanding its operations through acquisitions. In June the company acquired Integral Associates. With the acquisition, it added two growing and processing facilities in Las Vegas to support the expansion of distribution in Nevada. Equally, the company succeeded in acquiring Colorado-based MC Brands LLC.
The other significant development in the quarter was the receiving of cultivation license in Ohio last month. The company will have a cultivation facility in Toledo. The company has also closed the acquisition of Fiorello pharmaceuticals which is among the licensed growers in Schenectady County.
Enhancing the retail business
The company saw a 189% increase in retail revenue in the quarter. The main driver for growth was increased transaction activity at the Essence of retail stores. The company unveiled a rebrand of the Rise retail concept to enhance the customer experience. GTI has opened 13 stores since the beginning of the year with six opened in Q2 across Ohio, Florida, and Pennsylvania. The company is within its projection of 15 to 20 new stores with the target being 35 to 40 stores. In May the company acquired Evergreen Dispensary in Canton, Illinois. Equally, Rise Amherst started recreational sales in Massachusetts.