Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) has had some recent financial success that it says can be attributed to organic retail sales. However, despite monetary gains in some aspects, the company saw a sharp rise in operational costs since last year.
On Wednesday, the company announced its financial results for the second quarter of 2022 and provided an update on recent activity.
Opening six new dispensaries across Florida, Massachusetts, Pennsylvania and West Virginia is a notable example.
Trulieve is a publicly traded cannabis company operating in 11 states that claims to have leading market positions in Florida, Pennsylvania and Arizona. The Chief Executive Officer (CEO) for the company is Kim Rivers, a law school graduate from the University of Florida.
For Trulieve, revenue increased by 49 per cent year over year to US$320.3 million, up from US215.1 million last year with a 1 per cent sequential increase between Q1 and Q2 this year.
For retail revenue, the company observed a 3 per cent sequential increase this quarter up to US$298.6 million while wholesale, licensing and other revenue streams declined by 22 per cent sequentially to US$21.7 million. Gross profits for Trulieve also increased by US$4 million sequentially from Q1.
Operational highlights for the cannabis outfit include the successful launch of Sweet Talk, Muse and Roll One products across five new states; the production of over 10 million “finished goods units” in Q2, up 79 per cent year over year; and the expanded roll out of a so-called Customer Data Platform intended for precision marketing campaigns.
The company’s total gross profits increased by 26 per cent from US$144.5 million in 2021 to $182.2 million in Q2 this year. However, Trulieve’s operational costs increased by 111 per cent between the second quarter of 2021 and Q2 this year — up to US$144.2 million from US$68.2 million last year.
The adjusted EBITDA for the organization increased by 17 per cent in Q2 to US$111 million from US$94.9 million in 2021.
“Our team delivered strong second quarter results with topline growth and margin improvement by staying focused on our plan,” said Kim Rivers, Trulieve CEO.
“During our mid-year strategic review, we identified proactive measures to address the rapidly evolving economic landscape,” added Rivers.
“We are committed to meeting customer needs, improving performance in core markets, managing cash wisely, and streamlining operations across the company,” said Rivers lastly.
Additional examples of notable company activity this quarter include the celebration of six years since the first retail sale was made in Florida, the discontinuation of wholesale operations in Nevada (with the company currently assessing options to exit the market), the opening of the first company store in Arizona and a monetary contribution to the Smart and Safe Florida campaign to legalize adult-use cannabis in the state.
The company also says it is now currently operating 175 cannabis retail outlets with over 4 million square feet of cultivation and processing infrastructure throughout the United States.