On one hand, the marijuana industry is primed for once-in-a-generation-type growth. After the industry logged worldwide sales of just over $3 billion in 2014, estimates suggest that annual legal cannabis revenue could hit $50 billion to $200 billion by the end of the next decade. That’s a hefty compound annual growth rate that’s rightly garnered the attention of Wall Street and investors.
On the other hand, the cannabis industry hasn’t had time to mature, and that’s been reflected in the industry’s early stage operating results. Whereas Wall Street had been looking for a quick ramp-up of sales and push toward profitability, most pot stocks remain deeply in the red…
However, two cannabis stocks recently reported fantastic second-quarter operating results. And no, it wasn’t any of the most popular marijuana stocks, all of which remain underwater in terms of operating profitability, sans one-time benefits and fair-value adjustments.
Although this should come as little surprise, given that it’s one of the few marijuana stocks to have been consistently profitable over the past couple of quarters, vertically integrated, multistate dispensary operator Trulieve Cannabis(OTC:TCNNF) absolutely crushed its second-quarter results.
For the quarter, Trulieve delivered $57.9 million in sales, representing a 149% year-over-year increase, and a 30% sales bump from the sequential second quarter. According to the company, expansion of its existing store base in Florida, where Trulieve currently has 30 stores, as well as the introduction of smokable cannabis flower, drove sales growth and medical patient registration in the state. It is worth noting that the one nitpick during the quarter was the significant uptick in dried flower sales, which have traditionally lower margins and wound up pushing down gross margin from the prior-year quarter…
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