Like other well-capitalized cannabis MSOs including Trulieve, Green Thumb Industries is keeping an eye out for potential M&A targets. But CEO Ben Kovler set some clear limits on how his company is currently considering consolidation.
Speaking with investors Wednesday, Kovler said Green Thumb is not looking at opportunities in international cannabis markets, though he didn’t rule it out in the future. But in the U.S., his company could be looking at M&A as a means to growing its margins as long as it doesn’t mean “inheriting other people’s big problems.”
“We see material issues out there for players in the industry. We've been seeing it for a long time. It continues to actualize. And we've written down numbers and people were raising eyebrows on it. Now the numbers are coming in. And so we'll see. It's nothing transformational. There's not some big company we're eyeing for some groundbreaking piece of news,” he said, according to a Seeking Alpha transcript
For now, it sounds like Green Thumb is focused on organically growing its footprint and preparing for upcoming market launches.
“We are off to a great start in 2025. During the first quarter, we opened two new stores, including RISE Whitehall, which serves the greater Columbus, Ohio area and further cements our presence in one of the fastest growing markets in the country. Our outstanding retail and CPG teams are hard at work preparing for the launch of adult-use sales in Minnesota, which is expected to commence before year end. While we anticipate ongoing near-term headwinds from pricing compression, increased competition and consumer softness, we are confident in our team’s ability to navigate these challenges and continue delivering strong results for shareholders,” said Green Thumb President Anthony Georgiadis in a statement.
Green Thumb’s first-quarter revenue totaled $280 million, up just 1.4% from the year-ago quarter due to a decrease in retail revenue. The company blamed that primarily on price compression in existing markets like Illinois, Pennsylvania, New Jersey and Connecticut, which was partially offset by growth in Ohio and New York and a 13.6% increase in CPG revenue.
Total net income attributable to the company was $8.3 million, down significantly from $31.1 million in the prior-year period.
