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

A $2.2B Gold Project Is Outgrowing Its Plan | Michael Henrichsen – Gold X2 Mining

Pay for the Copper, Get the Gold Free | Rob McEwen – McEwen Inc

This Gold Discovery Was Already Huge. Now It’s Becoming a Monster. | Goliath Resources

Recommended

Homeland Nickel Signs Binding Offtake With Westwin for 20,000 Tonnes of Concentrate a Year

Golden Cariboo’s First Quesnelle Resource Estimate Tallies 1.19 Million Gold Equivalent Ounces

Related News

Florida Marijuana Group Unveils Revamped Legalization Plan for 2026

The proponents of Florida’s failed recreational marijuana measure have unveiled a revised constitutional amendment for...

Friday, January 17, 2025, 03:48:00 PM

Trulieve Director Sells $5.7 Million Worth Of Shares

Trulieve Cannabis (CSE: TRUL) has seen a plethora of insider transactions filed with Sedi over...

Friday, September 4, 2020, 10:01:10 AM

Trulieve Listed Warrants Subject To Six Month Hold As Of January 1

Trulieve Cannabis Corp (CSE: TRUL) may seen a swath of free trading warrants exercised over...

Thursday, December 17, 2020, 07:44:23 AM

Trulieve: Canaccord Reiterates $97 Price Target After Results

On November 15th, Trulieve Cannabis (CSE: TRUL) reported its third quarter results, announcing record revenues...

Friday, November 19, 2021, 10:31:00 AM

Trulieve: Canaccord Reiterates $97 Price Target Following First Quarter Results

Trulieve Cannabis (CSE: TRUL) reported its first-quarter financial results on May 13th, beating the analyst...

Sunday, May 16, 2021, 03:27:00 PM