Trulieve Posts Another Impressive Quarter With Plenty Of Catalysts Left On The Horizon
Trulieve Cannabis Corp (CSE: TRUL) (OTCQX: TCNNF) released its second quarter 2024 financial results, highlighting a period of solid growth and strategic expansion. The company reported revenue of $303 million, marking an 8% year-over-year increase and a 2% sequential rise. This growth was driven primarily by robust retail sales, which accounted for 95% of the total revenue, boosted by higher retail traffic and increased wholesale revenue.
The company achieved a gross margin of 60%, translating to a GAAP gross profit of $182 million. Despite reporting a net loss of $12 million, this figure represents a 48% improvement sequentially. When adjusted for non-recurring charges, asset impairments, disposals, and discontinued operations, Trulieve posted an adjusted net income of $0.2 million. This adjustment reflects the company’s ongoing efforts to streamline operations and enhance profitability.
Trulieve’s EBITDA for Q2 2024 was $88 million, constituting 29% of revenue. Adjusted EBITDA stood at $107 million, or 35% of revenue, showcasing a 1% sequential increase and an impressive 36% year-over-year growth. These figures underscore the company’s operational efficiency and effective cost management strategies.
Cash flow from operations was particularly strong, amounting to $71 million for the quarter. Trulieve also generated a free cash flow of $45 million, further solidifying its financial stability. The company’s cash reserves at the end of the quarter were $356 million, bolstered by an additional $2 million in tax refunds related to the 280E tax challenge. This healthy cash position provides Trulieve with the flexibility to pursue strategic initiatives and expansions.
The quarter also saw Trulieve expanding its retail footprint with the opening of three new dispensaries in Brooksville, North Palm Beach, and Stuart, Florida, as well as the acquisition of two dispensaries in Beavercreek and Columbus, Ohio. These expansions increased the percentage of retail locations outside Florida to 32%, reflecting the company’s strategy to diversify its geographic presence.
Recent developments further highlight Trulieve’s growth trajectory. The company launched adult-use sales in Ohio at three locations, introduced the #YesOn3 product line to support the Smart and Safe Florida adult-use campaign, and opened six new retail locations across Florida and Pennsylvania. Trulieve now operates 206 retail dispensaries and boasts over four million square feet of cultivation and processing capacity in the United States.
CEO Kim Rivers emphasized the company’s strategic focus, stating, “Our Q2 results underscore Trulieve’s commitment to operational excellence and strategic growth. We are well-positioned to continue driving value for our shareholders through disciplined execution and strategic expansion.”
In summary, Trulieve’s Q2 2024 financial results highlight a period of strong revenue growth, improved profitability, and significant cash generation. The company’s strategic expansions and operational efficiencies have positioned it well for continued growth and value creation in the competitive U.S. cannabis market.
