Canadian Cannabis Sales Increased 68% in May to $313 Million

Statistics Canada released May retail sales for the country this morning, with cannabis sales increasing from April, which had one less day. Sales of C$313.3 million, a record high, rose 2% after a 3% increase in April that followed a 14% gain in March and increased 68.1% from a year ago, slightly worse than the 71.7% year-over-year growth in April.

Hifyre IQ had forecast sales of C$322 million based upon its data. The data analytics provider has been estimating June sales to be modestly higher, which would be 1% lower than the actual May level and up 54% from a year ago.

COVID lockdowns have been weighing on retail sales, while an increase in the number of stores as well as falling flower prices have been boosting sales. In Ontario, the largest province in population, sales were up 3% from April and 171% from a year ago, reflecting the increase in the number of stores. Alberta, which is the second-largest province, was up 1% from April and up 29% from a year ago. Quebec increased 2%, while British Columbia increased 7%. BC, the third largest province, has experienced some of the strongest growth recently, gaining 70% from a year ago.

Hifyre IQ estimated that product categories have been stable, with a slight decrease in flower towards pre-rolls over time. Flower and pre-rolls represent, according to Hifyre IQ data, 74% of the market.

The June sales data will be released on August 20th.

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

Get Our Sunday Newsletter