Trulieve Sees Margins Contract, Expenses Climb In Q4 Following Harvest Acquisition

Trulieve Cannabis (CSE: TRUL) reported its fourth quarter and full year financial results for 2021 this morning, posting quarterly revenue of $305.3 million. The company meanwhile posted a net loss for the period, despite the record quarterly sales figure.

Revenue improved 36% on a quarter over quarter basis, climbing from $224.1 million in the third quarter to $305.3 million in the fourth quarter. Despite the massive bump in topline results, the company managed to post declining gross profit on a sequential basis, with gross profits falling from $153.9 million to $132.4 million, a 14% decrease. Gross margin % as a result fell from 69% to that of 43%.

Operating expenses grew rather significantly as well, jumping from $87.7 million to $150.6 million, a 72% increase, and the result of the Harvest Health acquisition closing on October 1. This in turn lead to the company posting a net loss of $71.5 million for the fourth quarter, as compared to an $18.6 million net income in the third quarter. Adjusted EBITDA meanwhile came in at $100.9 million, as compared to $98.0 million in Q3.

Altamira Gold Corp. — sponsored Sponsored · Altamira Gold Corp.

For the full fiscal year, revenues rose to $938.4 million, up 80% from $521.5 million seen in 2020. Gross profit was up 47% to $566.1 million, while gross margins were impacted heavily, falling from 74% to 60%. The decline was blamed on “strategic diversification,” with the company moving into lower margin channels and markets.

Despite the significant topline improvement, net income fell 71% on a year over year basis, dropping from $63.0 million to $18.0 million in 2021. Adjusted EBITDA meanwhile improved 48% on an annual basis to $384.6 million.

The company also reported a cash position of $234 million as of December 31, 2021.

In terms of guidance, Trulieve expects revenue for 2022 to be between $1.3 and $1.4 billion, while adjusted EBITDA is expected to come in at between $450 and $500 million. The company also indicated that it expects the second half of the year to have a stronger financial performance than the first half.

Full financial results have yet to be filed as of the time of writing.

Trulieve Cannabis last traded at $25.88 on the CSE.


Information for this briefing was found via Sedar and Trulieve Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why Is This $1.5 Billion Gold Story Worth Just $37 Million? | Fredonia Mining PEA

This Copper Stock Exploded Before Anyone Knew the Grade | Decade Resource

Silver Miners Will Crush Gold Miners | Adrian Day

Recommended

Cambria Gold Reverses Course on Mt. Margaret Spinout, Citing Strong Copper Fundamentals

Krait Critical Minerals Closes Acquisition of Nevada Hills Antimony and Its Two Washington Projects

Related News

Trulieve Reports Fourth Quarter Revenues Of $US79.7 Million

Trulieve Cannabis (CSE: TRUL) reported its fourth quarter and full fiscal year 2019 financial results...

Wednesday, April 8, 2020, 08:39:35 AM

Trulieve Sees Flat Q2 Results, Lowers Guidance For Full Fiscal Year

Growth appears to be slowing for Trulieve Cannabis (CSE: TRUL), whom this morning reported its...

Wednesday, August 10, 2022, 08:21:12 AM

Trulieve, Harvest Health Receive Court Approval For Merger, Closing Timeline Remains Vague

Approval from the courts has been granted to Harvest Health (CSE: HARV) in relation to...

Thursday, August 19, 2021, 08:59:38 AM

Trulieve Cannabis Closes Acquisition Of Harvest Health

Trulieve Cannabis (CSE: TRUL) has finally completed the acquisition of Harvest Health (CSE: HARV). It...

Friday, October 1, 2021, 07:43:45 AM

Trulieve Acquires Three Operating Dispensaries In Pennsylvania

Trulieve Cannabis (CSE: TRUL) has enlarged its presence in Pennsylvania. The company this morning announced...

Monday, April 5, 2021, 07:16:27 AM