While we are still fighting the pandemic, the marijuana boom is growing the industry in leaps and bounds. And that is helping U.S. based cannabis producers generate more profits. Let’s talk about how 2021 is shaping up for two of these companies and why I think they could have the incredible potential of being millionaire makers.

Curaleaf

Smart acquisitions have driven Curaleaf’s great revenue increases. In Q1 of this year, revenue reached $260 million, which is higher by 170% y/y. The company got a boost in wholesale and retail revenue. The 231% increase in retail put the company at $188 million and was especially great. This can be linked to the organic growth among its stores and six new stores across Maine, Florida, and Pennsylvania. The firm had a total of 102 locations at the end of Q1, and even made sales in Arizona, where marijuana was legalized in January.

Curaleaf’s Select brand, a brand of cannabis oil that it purchased from Cura Partners in Feb. for $948.8 million, led to the 254% increase in wholesale to $72 million from last year. Curaleaf is not yet profitable, but many of its purchases in 2020 — including dispensaries and cannabis manufacturers, like Curaleaf NJ, Blue Kudu, Arrow, Remedy, MEOT, and Alternative Therapies Group — have yet to reveal their full potential. These new assets will help increase revenue and profits even more in the years to come.

Trulieve Cannabis

Trulieve Cannabis got a lot of attention with its choice to buy Harvest Health, which gives the firm a strong foothold in the growing marijuana market in the Southeast, Northeast, and Southwest. This agreement, subject to approval, will add vital markets like Pennsylvania, Arizona, and Maryland to the company’s roster. They expect to produce around $1.2 billion in revenue and about $461 million in adjusted EBITDA this year with the aid of this purchase, which gives the company access to 126 dispensaries across 11 states.

Trulieve has shown a great start to 2021, recording impressive revenue growth of 102% y/y to $194 million in its first quarter. Its grip on the state of Florida, where it maintains 78 dispensaries, founded its growth. Also for Q1, adjusted EBITDA was recorded at $91 million, up 87% from last year despite expenses rising to $57 million from $29 million. Management’s expansion path led to the increase, but its positive EBITDA shows it is able to grow while also managing its costs. Meanwhile, net profits clocked in at $30 million, a 27% boost from last year.

Trulieve expects to have revenue between $815 million to $850 million for 2021. Along with adjusted EBITDA between $355 million and $375 million.

Author: Scott Dowdy

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