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Demand for cannabis-related products have scaled back after surging in the early days of the pandemic amid regulatory challenges, inflation and a dip in prices.
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.
Peer Green Thumb Industries (OTC:GTBIF) Inc, in February, also reported a fall in net income due to higher costs related to energy and lower prices.
However, Trulieve said that it expects its capital spending to be at least 50% lower this year.
“In 2023, we are laser focused on cash generation while investing to build a sustainable company designed to thrive in an integrated commerce environment,” said Chief Executive Kim Rivers in a statement.
Trulieve also expects positive free cash flow in 2023.
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.
