In a recent analyst note, Pablo Zuanic from Cantor Fitzgerald offered an update on the performance of Canada’s cannabis Licensed Producers in the August quarter, based on data obtained by the market scanner Hifyre.
“So far in calendar 3Q (Jul/Aug average daily sales), Organigram and VFF’s Pure Sun Farms (sales up 8% and 12%, respectively, vs. market growth of 5%) continue to outperform the Canadian recreational market,” Zuanic said. “There is literally a tie between the Top 3 players, with Hexo (NASDAQ: HEXO) at 8.3% share in the August month, Organigram at 8.2%, and Tilray (NASDAQ: TLRY) at 8.2%.”
Highlights: Sales Growth Trends In Canada
- Based on Hifyre and StatCan data, Zuanic noted that recreational retail sales in Canada are up 21% YTD through August, “ahead of most U.S. states”, although in terms of per capita recreational spending (in the ~$95 range), “Canada lags most U.S. recreational states.”
- Canadian recreational sales fell 1% in Aug MoM after 7% MoM growth in July. Daily average sales in July and August are 5% above 2Q22.
- In terms of the major formats, flower represented 40% of August sales, pre-rolls 31%, vape 14%, edibles 5%, concentrates 4%, oils 3%, drinks 2%.
- Flower sales are down 3%, after 2% seq growth in the second quarter of 2022; pre-rolls are up 19%, after 27% growth in …