Trulieve Cannabis Reports Smaller Q1 Loss on Higher Sales and Market Expansion Plans

Trulieve Cannabis, a prominent cannabis company based in Florida, reported a narrower first-quarter loss on May 9, driven by higher sales and robust demand. The net loss attributable to shareholders decreased to $23.1 million in the three months ending March 31, compared to $64.1 million during the same period last year. The company’s expansion efforts in the United States have contributed to its success, with plans to open 25 new stores in 2024. Florida, where Trulieve currently holds a substantial market share, is a crucial medicinal marijuana market due to its population of over 22 million people. Last month, the U.S. Department of Justice announced its intention to reclassify marijuana as a less dangerous drug, a decision that could potentially enable cannabis companies to deduct standard business expenses from their profits, thus significantly reducing their tax liability. This move could also facilitate major U.S. stock exchange listings for cannabis firms, enhance banking and customer access, and promote medical research. The Florida Supreme Court previously authorized voters to decide whether to legalize recreational marijuana usage via a ballot in November. According to Trulieve CEO Kim Rivers, “with strong performance in our core business and numerous promising prospects forthcoming, our outlook has never been more optimistic.” In the initial quarter of 2021, Trulieve’s revenue surpassed projections, reaching $297.6 million, whereas loss from continuing operations declined to 16 cents per share, down from 18 cents per share during the corresponding period the previous year. (Source: Reuters)