Canadian Cannabis Sales Sink in November

Statistics Canada released November retail sales for the country, with cannabis sales decreasing from October sharply to C$373.3 million. The growth per-day slowed, as November has one less day than October. October was revised from C$389.2 million to C$390.2 million. The sales were up 9.9% from a year ago, up from the reported 9.5% October growth rate that was revised to 9.8%. In 2022, total sales have increased 17.6% compared to the first 11 months of 2021 to C$4.09 billion.

An increase in the number of stores as well as falling flower prices that bring consumers from the illicit market have been boosting sales. In Ontario, the largest province in population, sales were down 4.3% from October and up 9% from a year ago, slightly slower than Canada overall. Alberta, which is the second-largest province, was down 5.9% from October and up 13% from a year ago. Quebec was down 2.6% from October and down 1% from a year ago, while British Columbia was down 4.2% from October as it advanced 17% from a year ago.

Hifyre IQ had forecast November sales at C$372.0 million based upon its data. The data analytics provider has been estimating December sales to be 8.7% higher, which would be 8.3% above the actual actual level and up 14.1% from a year ago, based upon its data. Hifyre estimates sales outside of flower and pre-rolls at 31.0% in November and 32.5% in December.

The December sales data will be released on February 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

Get Our Sunday Newsletter