Despite disruptions in tourism and Covid-19 fatigue, the cannabis industry continues to hit high marks. States like Colorado are reporting strong growth and the big players in the space were delivering stellar earnings results.
As much as Colorado depends on tourism that has all but evaporated, cannabis sales have held strong. Tourism volumes have fallen by 50%, but the state reported cannabis sales of $167 million in September, a new record. Year over year sales have grown over 20% each month since May 2020. It not only demonstrates that cannabis is resilient, but also that the state has a self-sustaining market that isn’t just reliant on tourism.
While New Jersey got most of the attention as a potential new recreational market this month, other states look like they are also quickly coming into play. Lawmakers from Rhode Island said there is an opportunity on the horizon for their state to legalize. In addition, the governor of Virginia said that the state will “move forward with legalizing marijuana.” The states that continue to reap the benefits are causing new states to want to jump on board.
Curaleaf (CURLF) reported a record $193.2 million in managed revenue for the third quarter of 2020 which was an increase of 164.0% versus $73.2 million in the third quarter of 2019. The managed revenue for the third quarter increased 59.2% sequentially. Pro forma revenues would be $215 million, which is also an increase of 30% sequentially. The company is enjoying a bounce back for markets in Nevada and Massachusetts where stores were closed during lockdowns. The gross margins increased by 700 basis points to roughly 50% as the company improved its operational efficiencies. EBITDA was $42 million in the quarter and is approximately 51% over the second quarter.
Green Thumb Industries (GTBIF) reported