Source: Sean Williams Motley Fool
Trulieve Cannabis
Perhaps one of the biggest surprises, especially if you don't follow the marijuana industry all that closely, is that a vertically integrated dispensary is already profitable. Traditionally, this is an industry with high up-front costs associated with store construction, remodeling, and marketing. Nevertheless, it hasn't stopped Trulieve Cannabis (NASDAQOTH: TCNNF) from reporting a quarterly profit.
As of this very moment, Florida's medical marijuana market represents Trulieve's entire world. It recently opened up its 22nd location within the Sunshine State, albeit two acquisitions announced in early November put Trulieve on track to enter California and Massachusetts. Massachusetts began selling recreational weed a little more than a week ago and could grow into a $1.8 billion market , with California having the potential to generate more in annual weed sales than all of Canada.
In its latest quarter, Trulieve Cannabis recognized $28.3 million in sales, which puts it on track for more than $100 million in extrapolated annual sales. What's truly impressive, though, is that cost of goods sold tallied just $8.3 million, with another $8.3 million in standard operating expenses. Even without the impact of IFRS accounting, Trulieve was very nicely profitable, and has consistently been so throughout the first nine months of 2018.
