GRUSF, a publicly traded cannabis company, has achieved 37% EBITDA margins in highly competitive markets with $800-$1000 pricing. This margin is the highest among publicly traded cannabis companies. The company is expected to further increase its margins when it begins operations in New Jersey and Illinois, where cannabis pricing is significantly higher, ranging from $2500 to $3500.
Maybe people are just thinking of gross profit margins. 36% is pretty realistic for gross margin. https://t.co/Dma5rqjaTS
People wildly overestimate profit margins https://t.co/DDCCKM6GGf
If a company can earn 37% EBITDA margins at $800-$1000 cannabis pricing, what will the margins be at $2500-$3500 pricing in IL and NJ? Once $GRUSF turns these assets on, we can calculate what is going to happen. This isn't rocket science.
37% EBITDA margins in the most competitive markets with the lowest pricing. This is the highest margins of any publicly traded cannabis company. And margins will only go higher when they turn on NJ and IL where pricing is 2-3X higher. Go @ObieStrickler and team! Just remarkable! https://t.co/lnNenGevoS
Most cannabis companies now pay an effective tax rate between 60 and 80 percent, according to multiple business owners. Now, with the move to reclassify marijuana as a less dangerous drug, that load may finally lighten. https://t.co/tAfGmD7BFl