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Green Thumb sales increase due to growing demand for cannabis in the United States

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Nov. 10 (Reuters) – Third-quarter revenue for U.S. cannabis producer Green Thumb Industries Inc (GTII.CD) jumped nearly 49% to beat Wednesday’s estimates, thanks to more distribution channels and traffic most important in its retail stores.

A record number of Americans have started using recreational cannabis products during the month-long shutdowns of the past year and now retail stores are reaping the benefits of visiting new and old. customers after pandemic reduction.

“American consumers overwhelmingly choose cannabis for their well-being. People demand this product and we are only seeing it grow,” Managing Director Ben Kovler told Reuters in an interview.

Kovler estimated that the U.S. cannabis industry currently accounts for $ 24 billion in annual sales, according to independent research data, and expects it to triple in size over the next decade as new States, products and consumers enter the market.

New policy changes favorable to the marijuana industry, including access to federal banks and expectations of federal decriminalization of marijuana, have sparked optimism among industry investors.

“We believe that American consumers will consume $ 80 billion of cannabis per year, which means there will be at least $ 50 billion in additional legal sales to come over the next decade,” Kovler said.

Chicago-based Green Thumb earnings more than doubled to $ 20.2 million, or 8 cents per share, in the third quarter ended Sept. 30.

Revenue reached $ 233.7 million from $ 157.1 million last year, narrowly exceeding Refinitiv IBES ‘estimate of $ 233.3 million.

Green Thumb, which has 16 manufacturing plants, 66 outlets and operations in 14 U.S. states, said its retail revenue grew 7.3% sequentially, as it opened new stores and that more people entered the older ones.

Reporting by Arunima Kumar and Rithika Krishna in Bengaluru; Editing by Devika Syamnath

Our Standards: Thomson Reuters Trust Principles.

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