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Thursday, Apr 25, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

The weed wire

Profits grow for Florida market monolith Trulieve

The clear leader of Florida’s highly competitive medical market is one of the most profitable in the cannabis space

Profits grow for Florida market monolith Trulieve

The strongest player in Florida’s highly competitive medical weed market is extending its lead.

On Tuesday, Trulieve Cannabis Corp. (CSE: TRUL) posted expanding profits in its earnings report for the three months ending March 31.

For the first quarter 2020, the company reported record total revenue of US$96.1 million, an increase of 21 per cent over the previous sequential quarter.

Read more: Trulieve posts record revenues in quarterly report

Trulieve also posted industry-leading profitability with adjusted earnings before interest, taxes, depreciation and amortization of US$49.4 million, representing 51 per cent of its revenue.

To investors, the company’s financials represent earnings per share of US$0.12.

Trulieve ended the quarter with cash and cash equivalents of US$100.8 million.

Non-financial highlights over the quarter include opening three new stores in Florida, appointing a new chief financial officer and celebrating two days of US$2 million revenues related to 4/20.

CEO Kim Rivers said her company posted exceptional operational results as her team worked to scale supply chain efficiencies to meet an increased demand for its products.

“Trulieve’s execution of key fundamentals and financial discipline coupled with market share growth this quarter contributed to positive free cash flow, further strengthening our balance sheet and validating our financial stewardship,” she said in a statement. “Our financial position continues to differentiate us in the market by providing flexibility to support both organic and external growth initiatives which is increasingly important during these times.”

According to recent data from Florida Health’s Office of Medical Marijuana Use, Trulieve holds a dominant market share in terms of store count and product sold.

The company leads the state dispensary count with 47 locations, trailed by Surterra Wellness with 39 and Curaleaf Holdings, Inc. (CSE: CURA) with 28.

By milligrams of THC, Trulieve holds 51 per cent of the overall market share in terms of dispensed product. Over the May 8–14 period, the company sold 18,285 ounces of dispensed cannabis, representing roughly 52 per cent of the market. Surterra was a distant second with roughly 11 per cent of the total market.

 

nick@mugglehead.com

@nick_laba

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