Trulieve Reports Growth in First Quarter 2024 Financials
The TDR Three Key Takeaways regarding Trulieve and Financial Growth:
- Trulieve’s Q1 revenue increases to $298 million, showing strong sales growth.
- Trulieve advances in Florida with new dispensary openings.
- The company makes additional progress on 280E taxation.
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), a U.S. cannabis company, announced its financial results today for the first quarter ended March 31, 2024, from its headquarters in Tallahassee, Florida. The company reported a revenue of $298 million for the quarter, marking a 4% increase from the previous quarter’s $287 million and $285 million reported in the same quarter last year. This growth in revenue was primarily driven by strong retail sales, which accounted for 96% of the total revenue.
The company’s gross margin improved significantly to 58%, up from 54% in the last quarter and 53% in the previous year’s first quarter. This increase in gross margin led to a gross profit of $174 million, an increase from $154 million in the preceding quarter and $150 million in the prior year’s quarter. These improvements in gross margins reflect Trulieve’s effective cost-management strategies and operational efficiency.
Trulieve also demonstrated strong cash management, with operational cash flow reported at $139 million and free cash flow at $124 million. Despite these strong cash flows, the company reported a net loss of $23 million for the quarter. However, this represents a significant improvement from a net loss of $33 million in the previous quarter and $64 million in the first quarter of the previous year, indicating positive momentum in reducing losses.
On the operational front, Trulieve expanded its retail footprint by opening three new dispensaries in Florida, located in Cocoa Beach, Palm Bay, and Pinellas Park. This expansion is part of Trulieve’s strategic initiative to diversify its presence outside of its core Florida market, which now constitutes 31% of its total retail locations.
Strategically, the company is actively involved in the Smart and Safe Florida initiative, aiming for a spot on the November 2024 ballot. If passed, this could allow the company to start adult recreational cannabis sales by May 2025. Another significant development during the quarter was the progress made on the federal rescheduling of cannabis to Schedule III, which could reduce the company’s tax burden under IRS section 280E and facilitate expanded research capabilities.
Kim Rivers, CEO of Trulieve, commented on the results: “The first quarter of 2024 has set a solid foundation for continued growth throughout the year. Our strategic expansions and operational enhancements have directly contributed to our strong financial performance this quarter.” She added, “With the upcoming legislative changes and potential market expansions, we are well-positioned to capitalize on new opportunities, which will drive our growth and enhance shareholder value.”
Looking ahead, Trulieve remains well-positioned financially with a strong cash reserve of $327 million at the end of the quarter, bolstered by a $50 million tax refund related to its successful challenge of IRS section 280E. This substantial cash reserve supports the company’s strategic growth initiatives and operational expansions. Despite the net loss, the consistent revenue growth and improved gross margins are promising indicators of Trulieve’s potential shift toward achieving operational profitability. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.
