UPDATE 1-Trulieve Cannabis quarterly revenue beats estimates on growing pot demand

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Nov 15 (Businesshala) – Pot maker TruLive Cannabis Corp reported a 64.4% jump in quarterly revenue on Monday that beat market expectations, fueled by a higher retail footprint as demand for cannabis and related products continued to rise.

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Shares of TruLive, which were up 6% this year, are trading 9.63% higher at C$42.48.

The cannabis industry was the biggest beneficiary of the pandemic-induced lockdown, with increased consumer appetite for pot products for entertainment and relaxation purposes.

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Retail stores are now seeing even more traffic, as both new and old customers flock to Canada after Canada’s easing of pandemic-era restrictions.

TruLive’s revenue rose 64% from a year earlier to $224.1 million in the three months ended September 31, lowering Refinitiv’s IBES estimate of $221.01 million.

Canadian Equity Research analyst Derek Daly wrote in a note that the pot maker’s healthy liquidity “does well to invest in profitable growth with a focus on integrating the recently closed Harvest acquisition and building scale in key markets.” deployed.”

The company completed a $2.1 billion purchase of medical pot maker Harvest Health & Recreation Inc. in October. TruLive and Harvest’s combined revenue was approximately $316 million in the third quarter.

Trulieve and Harvest both opened 13 new dispensaries during the third quarter and operated 155 stores with approximately 3.5 million square feet of cultivation and production capacity as of November 15.

TruLive’s profit increased 7% to $18.6 million in the quarter, which included $16.4 million of one-time compensation and transaction costs related to the Harvest deal.

However, operating expenses more than doubled to $87.7 million. (Reporting by Ritika Krishna in Bengaluru; Editing by Krishna Chandra Eluri)

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