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Cannabis demand has taken a hit as persistently high inflation during the first half of the year forced customers to reduce spending on non-essential and recreational products.
The cannabis industry is also struggling with lower prices and higher input costs amid a tight labor market and increased competition.
Trulieve said revenue fell 10% to $282 million for the reported quarter from a year earlier, while operating expenses ballooned 205% to $433 million.
The pot firm, like its peers, has undertaken several cost saving measures. In June, Trulieve said it plans to wind down the Massachusetts operations by the end of the year and close a retail store in California.
Trulieve also said it plans to reduce inventory and preserve cash by reducing wages and eliminating redundancies throughout 2023.
Despite the fall in revenue, Trulieve CEO Kim Rivers said “demand for legal cannabis remains strong”, adding the company’s strategy and scaled operations will help it exit the year “leaner and stronger”.
However, the company is expecting third-quarter revenue to be down in mid-single-digits sequentially.
