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The
results come as the sector has drawn renewed investor interest
with a cannabis decriminalization bill heading for vote in the
U.S. House of Representatives this week.
Trulieve, which operates in 11 states including Arizona,
Florida, and Pennsylvania, said fourth-quarter revenue surged
81% to $305.3 million also boosted by its $2.1 billion
acquisition of medical pot producer Harvest Health.
The company said it expects full-year 2022 revenue to be in the
range of $1.3 billion to $1.4 billion, and adjusted core
earnings in the range of $450 million to $500 million.
U.S. cannabis sales, which boomed during pandemic-led lockdowns,
is forecast to reach $46 billion by 2026, according to industry
research firm BDSA, as states like New York and New Jersey open
up.
Shares of Trulieve Cannabis are listed in Canada as the two
large U.S. stock exchanges do not allow companies that grow or
sell the plant to list their shares. The stock is down 21.3%
year-to-date.
Still, margins and profits remain thin, triggering calls from
investors and analysts for consolidation to improve
profitability by finding savings in scale.
On a reported basis, Trulieve Cannabis posted a loss of $71.5
million for the quarter ended Dec. 31, compared to a year-ago
profit of $3 million.
The company took $73.3 million of non-recurring fair value of
inventory step up, and acquisition charges primarily associated
with the Harvest buy.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj
Kalluvila and Maju Samuel)
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