Trulieve Cannabis beats quarterly revenue estimates on strong pot demand

Trulieve Cannabis

12/05/2022 16:49

By Rithika  Krishna
    May 12 (Reuters) - Trulieve Cannabis Corp  TRUL.CD  reported
a 64% jump in first-quarter revenue on Thursday that beat
estimates, on the back of wider acceptance and demand for pot
and related products.
    The company's shares rose 5.78% to C$18.68.
    More states in the U.S are moving towards allowing sale of
recreational cannabis, with 18 already on board, underscoring
continued support and demand for cannabis since the imposition
of lockdowns during the COVID-19 pandemic.
    The results come a month after the U.S. House of
Representatives passed a bill to end the federal ban on
marijuana, though the measure was seen as unlikely to pass the
Senate.  urn:newsml:reuters.com:*:nL2N2VY25I
    "We are coming home to the roost on the federal side...Do I
think comprehensive policy reform will likely happen this year?
Likely not. However, do I think there is a path for incremental
reform? Absolutely do," Chief Executive Officer Kim Rivers told
Reuters. 
    While Trulieve has expanded its geographical footprint
through the acquisition of Harvest last year, Florida remains
the company's largest market with about 70% of its dispensaries
operating in the state, where only medical marijuana is legal. 
    "We continue to see high growth (in Florida) in terms of
medical patients on a week over week basis," Rivers said, adding
that potential for recreational program would be a catalyst
going ahead.
   "The punchline on the quarter is revenue came in better than
expected and margin rate was stable, while Trulieve generated
$45 million in operating cash flow," said analyst Matt Mcginley
from Needham. 
    The company posted quarterly revenue of $318.3 million,
topping average expectations of $306.4 million, according to
Refinitiv IBES, boosted by an increase in retail sales and
overall patient count.
    The company's adjusted EBITDA (earnings before interest,
taxes, depreciation, and amortization) rose 16% to $105.5
million in the reported quarter.

 (Reporting by Rithika Krishna in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Rithika.Krishna@thomsonreuters.com; Twitter: https://twitter.com/rithika_krishna;))