Trulieve Puts Eyes on Growth-Oriented Markets

Trulieve

 

Company Profile:

Headquarters: Tallahassee, Fla.

Operating States: Arizona, California, Colorado, Connecticut, Florida, Georgia, Maryland, Ohio, Pennsylvania, West Virginia

Employees: 5,900 (as of March 31)

Dispensaries: 185 (as of July 12)

Cultivation Sites: 18 (as of March 31)

Cultivation Capacity: 4 million square feet (as of March 31)

Geographic Focus: Established hubs in the Northeast, Southeast and Southwest

Q1 2023 Financial Highlights:

• Net Revenue: $289 million
• Gross Profit: $150 million
• Net Loss: $64 million
• Cash Balance: $195 million

States With Retail Operations: Arizona (21), California (1), Connecticut (1), Florida (125), Georgia (4), Maryland (3), Ohio (1), Pennsylvania (20), West Virginia (10)

Brands:

Trulieve Brands:

• Premium: Cultivar Collection, Muse, Avenue
• Mid: Alchemy, Momenta, Sweet Talk, Modern Flower
• Value: Roll One, Co2lors, Loveli

Trulieve Brand Partners:

• Alien Labs
• Bellamy Brothers
• Bhang
• binske
• Black Tuna
• Blue River
• Connected
• DeLisioso
• Khalifa Kush
• Love’s Oven
• Miami Mango
• Slang Worldwide
  
• Sunshine Cannabis

2023 Expansion Highlights:

• Opened 11 dispensaries in Phoenix, Ariz.; Fort Myers, Palatka and Winter Haven, Fla.; Marietta, Macon, Newnan and Pooler, Ga.; Columbus, Ohio; Limerick, Pa. and Beckley, W.Va.
• Opened first two dispensaries in Georgia located in Macon and Marietta, introducing access to cannabis for the state’s medical patients.
• Opening of first Trulieve dispensary in Ohio (July)
• Launched adult-use sales in Bristol, Conn.
• Launched adult-use sales in all three Maryland Trulieve locations July 1
• Ramped production at new 750,000-square-foot indoor cultivation facility in Florida

Commentary

For Trulieve, the narrative this year is one of growth and meaningful streamlining of operations. Not for nothing, CEO Kim Rivers has publicly set a goal of hitting $100 million in operating cash flow in 2023. Retail expansion is a big part of that goal, with corporate eyes on growth-oriented markets like Arizona, Florida, Georgia, Maryland, Pennsylvania and West Virginia.

"In addition to the [first] nine stores we’ve opened this year, we are adding retail locations in several markets including Florida, Georgia, and Ohio," a Trulieve spokesperson told CBT. "At the same time, we continue to refine our processes across our retail footprint to provide a more seamless experience for our growing customer base. We do not have any plans to reduce our retail presence in the latter half of the year, although we may opportunistically relocate stores."

The same goes for the company's cultivation business: Trulieve is investing in its flagship markets, especially its home base of Florida, while also making sure to right-size operations in the face of economic headwinds and tough supply/demand dynamics across the U.S.

"Trulieve has invested in building out supply chain capacity over the past several years with an emphasis on our cornerstone markets of Arizona, Florida, and Pennsylvania," the spokesperson said. "As part of ongoing efforts to streamline our operations, we have reduced utilization at some sites to better align production with current demand. We have the ability to increase production utilization in the future when catalysts such as adult use expansion in Florida and Pennsylvania occur. Over the past year we have been ramping production at our new state of the art 750,000-square-foot cultivation facility in Jefferson County, Fla., which we expect will have lower production costs once fully ramped at year end."