May 9 (Reuters) – Pot firm Trulieve Cannabis
posted a narrower first-quarter loss on Thursday, driven by
higher sales and robust demand.
The Florida-based company’s net loss attributable to
shareholders narrowed to $23.1 million in the quarter that ended
March 31, down from $64.1 million a year earlier.
WHY IT’S IMPORTANT
Trulieve has been expanding its presence across the U.S.
with plans to open 25 new stores in 2024 as it hopes to benefit
from the potential legalization of the drug in Florida and at
the Federal level.
Florida, with a population of more than 22 million, is a
crucial medicinal marijuana market for Trulieve, which enjoys
significant market share within the state.
CONTEXT
Last month, the U.S. Department of Justice moved to
reclassify marijuana as a less dangerous drug, a step that will
allow pot firms to deduct normal business expenses from their
profit, thereby reducing the tax burden and boosting
profitability.
Successful reclassification would also enable pot firms to
uplist to major U.S. stock exchanges, improve banking and
consumer access, and make medical research easier to conduct.
Earlier this year, the Florida Supreme Court had allowed
voters to decide on the fate of recreational use of marijuana in
the state through a referendum on the November ballot.
KEY QUOTES
“With strong performance in our core business and several
meaningful catalysts on the horizon, the outlook has never been
brighter,” said CEO Kim Rivers.
“Given our financial performance and significant scale in
key markets, Trulieve is best positioned for the coming wave of
growth catalysts,” she added.
BY THE NUMBERS
Trulieve posted a revenue of $297.6 million in the first
quarter, beating analysts’ expectations of $285.9 million.
Loss from continuing operations narrowed to 16 cents per
share in the January-March quarter, from 18 cents per share a
year earlier.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Ravi
Prakash Kumar)
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