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

Rackla Metals Adds Two Northern Development Veterans to Board as Lentung Advances

Northmin Hits 12.85% Copper and 933 g/t Silver in Highest Grade Tynagh Assays Yet

Related News

Trulieve Cannabis To Acquire Harvest Health For $2.1 Billion

Consolidation among US based multi state operators has officially begun. Trulieve Cannabis (CSE: TRUL) this...

Monday, May 10, 2021, 07:20:31 AM

Trulieve Cannabis Posts Q1 Revenues Of $318.3 Million, Net Loss

Trulieve Cannabis (CSE: TRUL) this morning reported its first quarter 2022 financial results. Results were...

Thursday, May 12, 2022, 08:00:06 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 Prices Public Offering At C$198.1 Million

Trulieve Cannabis (CSE: TRUL) this evening released the pricing of their previously announced public offering...

Wednesday, April 7, 2021, 08:26:04 PM

Trulieve Reports Q4 2020 Revenues Of $168.4 Million, Net Income Of $3.0 Million

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

Tuesday, March 23, 2021, 07:26:18 AM