By Sourasis Bose
March 8 (Reuters) – Trulieve Cannabis Corp on Wednesday forecast sequentially lower first-quarter revenue after reporting quarterly results that missed market expectations, as demand for cannabis-related products dropped amid regulatory challenges, inflation and a dip in prices.
“We are seeing smaller spend per visit,” Chief Executive Kim Rivers said during a post-earnings conference call.
The company had said in November that it would be lowering production to match the dip in demand.It also reduced its inventory by $4 million to generate cash.
Shares fell 6.5% after the company said it expects growth to be affected by inventory reduction throughout 2023.
Cannabis companies have opted for several cost-reduction measures over the last year.Last month, industry major Canopy Growth Corp announced plans to cut down its workforce and shed some assets in its bid to turn profitable.
Some form of Buy Jack Herer marijuana Strain Online usage has been legalized in about 40 U.S. states, but it remains illegal under federal law despite calls for reclassification from several politicians, including President Joe Biden.
For 2023, Trulieve said that it expects positive free cash flow and capital spending to be at least 50% lower.
The Florida-based company’s adjusted core profit fell to $85 million in the fourth quarter ended Dec.31, from $100.9 million a year earlier.
Its revenue for the reported quarter fell to $302 million from $305 million a year ago, and also missed average analysts’ estimate of $306.25 million. (Reporting by Sourasis Bose in Bengaluru; Editing by Shailesh Kuber)