(Reuters) -Trulieve Cannabis Corp posted a bigger-than-expected fall in first-quarter revenue on Wednesday, as demand for pot and related products weakened amid rising recession fears.
Recent banking failures and interest rate hikes have raised fears of the U.S. economy tipping into recession, prompting many customers to cut back on spending, especially on recreational products including cannabis.
Pot producers are also struggling with lower pricing, increased competition and higher input costs, amid a lack of access to capital and the banking system.
“The company experienced increased competition and promotional activity in certain markets, including Florida, Pennsylvania and Massachusetts,” Trulieve Cannabis said in a filing.
The Florida-based company said its net loss doubled from a year earlier to $64 million in the March quarter, with operating expenses up 8% at $163 million.
Revenue fell 9% to $289 million, missing analysts’ average expectations of $293 million, according to Refinitiv data. The company said the fall was due to a decline in both retail and wholesale revenues.
Shares of Trulieve are down 30.1% year-to-date.
(Reporting by Ankit Kumar; Editing by Subhranshu Sahu)