Cannabis Sales Remain Soft in Canada

Statistics Canada released December retail sales for the country, with cannabis sales increasing from the weak November levels, up 8.2% to C$441.2 million. October was revised lower to C$407.9 million. The sales, which rose 4.7% on a per-day basis, were up just 3.6% from a year ago, down from the 19.8% August growth rate and the lowest annual  growth rate since legalization commenced. In 2022, total sales increased 17.9% to C$4.52 billion, and they  increased 12.3% during 2023.

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 up 19.2% from November and up 8% from a year ago. Alberta, which is the second-largest province, was up 11.3% from November and up 11% from a year ago. Quebec was down 5.2% from November and down 10% from a year ago, while British Columbia was down 12.6% from November as it fell 6% from a year ago.

Hifyre IQ had forecast December sales at C$444.5 million based upon its data, so this was below the estimate. The data analytics provider has been estimating January sales to be 6.1% lower, which would be 5.4% below the actual actual November level and up 5.6% from a year ago, based upon its data. Hifyre estimates sales outside of flower and pre-rolls at 30.6% in November and 31.7% in December.

The January sales data will be released on March 22nd.

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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