Trulieve Cannabis Corp. (CSE:TRUL) reported record sales of $44.5 million in its first quarter release, nearly triple the $15.2 million in revenue that it generated a year ago.
Florida-based Trulieve has dozens of medical dispensaries in the company’s home state, which continues to drive its revenues while capitalizing on a growing medical marijuana market that still holds significant potential.
In addition to delivering on strong financial results we also achieved many significant milestones in the first quarter of the year. Growth continued in Florida with the opening of four new dispensaries, completing the first sale of smokable flower in Florida, and settling with the Florida Department of Health, allowing us an additional 14 stores above the state cap. We are very pleased with the progress we experienced in the beginning of 2019 and are continuing to see that same momentum carry into the second quarter.”
– Kim Rivers, CEO of Trulieve
Profits up from last year
Another positive for Trulieve investors is not only was the company able to produce significant sales growth during the quarter, but it stayed in the black while doing so. Profits came in at $14.7 million for the vertically integrated medical marijuana firm, and that’s after a hefty tax provision of $10.8 million. A year ago, Trulieve’s after-tax profits were $6.9 million, with its tax expenses being just $3.8 million.
While Trulieve did benefit from fair value adjustments adding $10 million to its gross profit, even without the boost it still would have been profitable as its operating income was over $26 million. Operating expenses of $13.4 million were up significantly from the $4.8 million that Trulieve incurred a year ago, but the increase was not enough to take away from the improved sales numbers this quarter.
Significant growth still expected
The Florida-based firm is expected to grow further with its recent expanded presence into other U.S. states. Earlier in the month, Trulieve acquired The Healing Corner, a Connecticut-based company making it the fourth state the company operates out of. And with 10 states having legalized recreational cannabis, 33 states legalized medical marijuana, and other states considering either option, there are more opportunities for Trulieve to keep expanding.
With continued growth, Trulieve expects to reach $220 to $240 million in sales for 2019. And in 2020, it is forecasting revenues to reach as high as $400 million. Trulieve is still committed to growing the Florida market while also focusing on building its brand in the other states.
If Trulieve achieves its growth targets, it could quickly become one of the top pot stocks in the world. While the numbers have lots of assumptions built into them, with Trulieve already hitting more than $100 million in sales in 2018, it seems attainable. The company’s strong presence in Florida, and its trend of of growing sales profitably, may help it reach its goals as it expands into other U.S. markets.
*All figures in USD