As COVID-related restrictions begin to ease across the globe, some industries are feeling the benefits more than others. When it comes to Canadian recreational cannabis sales, new Hifyre scanner data reveals a 10% improvement sequentially, noted Cantor Fitzgerald’s Pablo Zuanic in his latest industry report.
The analyst was projecting more of an accelerated growth rate compared to the second-quarter growth pace, but that didn’t happen despite cannabis shops now receiving in-store traffic.
Hifyre estimated August sales reached CA$347 million ($275.6 million), representing
2% month-over-month growth, after hitting CA$339 million in July (which was up 7% from June). The average monthly sales for both months amount to CA$343 million, which is 10% higher than the second quarter monthly average, explained Zuanic.
“If we assumed September is ﬂat month-over-month, this would still imply about 11% sequential quarter-over-quarter growth,” the analyst detailed, adding that this is neither good nor bad, just not “accelerated” as he was expecting.
The report also revealed that pre-rolls have driven growth accounting for 24% of sales, improving 27% over the second quarter monthly average. Flower sales were up only 2%, accounting for almost half of the sales, while vapes (13% of sales) and edibles (5% of sales) jumped 9% and 20%, respectively. Concentrates sales improved 24% and accounted for 4% of industry sales.
Performance By Company
Industry giants had various performances, with Organigram OGI and Auxly
CBWTF standing out and outperforming with 30% and 22%, respectively, Zuanic highlighted.
- Cronos Group CRON – Up 50%
- Organigram – Up 30%;
- Auxly – Up 22%;
- Tilray TLRY – Up 6%;
- HEXO HEXO – Up 7%;
- Village Farms Intl VFF – Up 7%;
- Canopy Growth CGC – Down 12% ;
- Aurora Cannabis ACB – Down 16%;
- Sundial Growers ( NASDAQ: SNDL) – Down 4%.
“In terms of companies reporting July or August quarters, we calculate Organigram is on pace for a signiﬁcant beat with August quarter sales up 44% sequentially, while HEXO (July quarter) and Tilray (August) point to low single-digit pro forma growth,” noted Zuanic.
Market Share By Company
- Tilray – 15.3% share (consisting of Aphria’s 11.1% and Tilray’s 4.2%);
- HEXO (including Hexo and recently acquired Redecan, Zenabis and 48North) - 12.7% share;
- Canopy Growth (counting Supreme) – 10.2% share;
- Organigram – 7.1% share;
- Village Farms Intl – 7.0% share;
- Auxly – 5.3% share;
- Cronos Group – 4.2% share;
- Aurora Cannabis – 3.9% share;
- Sundial Growers – 1.9% share.
Organigram’s shares were trading 0.75% lower at $2.63 per share during Tuesday's pre-market session.
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