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.

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 Copper Juniors Could Explode After This Trade War Move | Christian Easterday – Hot Chili

Silver Is Rarer Than Gold, And the Market’s Waking Up | Shawn Khunkhun – Dolly Varden Silver

Gold Will Hit North of $4,000: Who’s Actually Producing? | Shane Williams – West Red Lake

Recommended

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Related News

Trulieve: Analysts Raise Price Targets Following Q4 Results

Yesterday, Trulieve Cannabis (CSE: TRUL) announced their fourth quarter and year-end financial for 2020. The...

Saturday, March 27, 2021, 02:45:00 PM

Trulieve Receives Georgia Cannabis Production License, Targets Five Dispensaries

Trulieve Cannabis (CSE: TRUL) announced on Wednesday that its subsidiary in the US state of Georgia...

Thursday, September 22, 2022, 10:44:00 AM

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 Reports Third Quarter Revenues of US$70.7 Million

Trulieve Cannabis Corp (CSE: TRUL) announced its third quarter financial results after the bell today,...

Monday, November 18, 2019, 05:46:58 PM

Paradigm Initiates Coverage On Trulieve With $59 Price Target

Earlier this month, Paradigm Capital initiated coverage on Trulieve Cannabis Corp (CSE: TRUL) with a...

Sunday, December 27, 2020, 01:42:00 PM