Illinois Weed Revenue Takes A Hit From Missouri Pot Retailers Where First-Month Sales Boomed

Recreational marijuana sales in Missouri kicked off in early February, several days earlier than expected, only to garner $71.7 million in the first month of sales, reported Columbia Missourian.

Data from the Department of Health and Senior Services data suggest that recreational cannabis sales accounted for two-thirds of combined total cannabis sales of $102.9 million.

By comparison, during the first six months of legal, medical marijuana sales in the Show-Me State, Missourians purchased $38.5 million worth of cannabis.

Moreover, in Illinois, following the launch of adult-use cannabis sales in January 2020, users bought $39 million worth of recreational marijuana.

Illinois February Sales Take Hit From MO Going Rec

Speaking of the Prairie State, recreational sales totaled $120.5 million in February, representing a year-over-year increase of 5.7% and a month-over-month drop of 5.8%, reported Marijuana Business Daily.

According to new data published by the Illinois Department of Financial and Professional Regulation (IDFPR), the state saw a 10.1%  year-over-year decline in out-of-state shoppers, who spent $30.8 million on cannabis, accounting for 25.5% of monthly sales.

Cantor Fitzgerald's analyst Pablo Zuanic said in his recent note that the launch of recreational sales in Missouri might have affected overall monthly sales figures in Illinois.

"We believe stores near the MO border (as well those near IL's southern tip and the southern part of IA) could have seen a drop in sales of more than 30%," he said last week.

To that point, the analyst said that companies like Jushi Holdings Inc. JUSH JUSHF and Ascend Wellness Holdings, Inc. AAWH AAWH, which operate in Illinois, will provide additional insight.

"We realize it is early days, especially with MO just starting rec in early Feb, and we will wait for companies with exposure to give more color," Zuanic added.

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Nevada Cannabis Prices Going Down Despite Rising Inflation

Meanwhile, in Nevada, cannabis retailers generated nearly $1 billion in taxable sales in 2022, representing an approximately 4% year-over-year drop, reported KUNR Public Radio.

"This is the first time that cannabis sales in Nevada have declined since we legalized cannabis for adult use," Tyler Klimas, executive director of the Nevada Cannabis Compliance Board (CCB), said.

The average retail price users paid for a gram of marijuana flower plunged 19% to $7.18 in 2022.

Klimas noted that both trends are evident in other cannabis markets nationwide following a surge in cannabis sales during the coronavirus pandemic.

COVID and stimulus package "put an extra discretionary income in people's pockets," Klimas continued, adding that's what drove a "50% growth year in sales" in the subsequent period.

Photo: Courtesy of NikolayFrolochkin and ganjaspliffstoreuk by Pixabay

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Posted In: Analyst ColorCannabisNewsPenny StocksRetail SalesMarketsCantor FitzgeraldIllinois cannabismarijuana salesMissouri legalizationNevadaPablo ZuanicRecreational CannabisTyler Klimas
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