Trulieve Reports Expanded Q2 Deficit, Cites Unfavorable Weather Impacting Ongoing Quarter Performance

MIAMI—Trulieve Cannabis (TRUL.CD), a significant player in the cannabis industry, recently announced a larger financial loss for the second quarter. This loss has been attributed to a combination of unusual weather patterns and a drop in consumer spending, which have both contributed to negative impacts on the company’s financial performance in the current quarter.

Amidst a backdrop of rising production costs and falling prices, the cannabis sector is facing heightened competition.

During a discussion following the release of earnings, company executives delved into the intricate relationship between limitations on consumer spending and the significant influence of rising temperatures on the company’s revenue during the ongoing financial period.

“Among the notable effects of the higher temperatures is a noticeable decrease in cannabis transactions, evident in reduced foot traffic as customers choose to stay indoors,” explained Eric Des Lauriers, a Senior Research Analyst at Craig-Hallum Capital Group.

Trulieve reported a clear 10% drop in revenue, amounting to $282 million for the reported quarter, compared to the same period the previous year. Meanwhile, operating costs surged dramatically by 205%, reaching $433 million.

The company noticed a recent increase in retail revenue, excluding deferred income, by $3 million sequentially. This growth was attributed to more visitors and higher sales volume.

Taking a cue from other players in the industry, the cannabis company introduced a plan to reduce its inventory. This strategy places a strong emphasis on conserving financial resources through wage reductions throughout 2023.

According to their accounts, Trulieve faced a financial loss of $404 million, which translates to $1.8 per share, marking the end of the quarter on June 30. In contrast, during the same period the previous year, the company reported a loss of $22 million, or 9 cents per share.