Canadian Cannabis Sales Grow 74% in February to $263 Million

Statistics Canada released February retail sales for the country this morning, with cannabis sales growth decreasing sequentially. Sales of C$263 fell 5.9% from January (three fewer days), which had declined  6.0% from December levels, and rose 74.4% from a year ago. Note that the month was a day shorter than a year ago. This was the slowest year-over-year growth since adult-use sales commenced.

Hifyre IQ had forecast sales of C$260 million based upon its data. The data analytics provider has been estimating March growth to be 18% above its February forecast (there are three more days in the month), which would be 16% higher than the actual February level and up 69% from a year ago.

The decrease in February, the second consecutive sequential decline, was due to the fewer number of days during the month. An increase in the number of stores as well as falling flower prices have been boosting sales in previous months. In Ontario, the largest province in population, sales were up 0.7%, reflecting the increase in the number of stores. Compared to a year ago, sales gained 132%. Alberta, which is the second-largest province, fell over 8%, up 59.8% from a year ago. Quebec slipped 10%, while British Columbia fell almost 9% compared to January.

Hifyre IQ estimated that product categories have been stable, with a slight decrease in flower towards pre-rolls. Flower and pre-rolls represent, according to Hifyre IQ data, 73% of the market.

The March sales data will be released on May 21st.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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