Leading Publicly Traded Cannabis Companies Continue Strong Revenue Growth in September

The Public Cannabis Company Revenue & Income Tracker, managed by New Cannabis Ventures, ranks the top revenue producing cannabis stocks that generate industry sales of more than US$7.5 million per quarter. This data-driven, fact-based tracker will continually update based on new financial filings so that readers can stay up to date. Companies must file with the SEC or SEDAR to be considered for inclusion. Please note that we raised the minimum quarterly revenue in May from US$2.5 million and from US$5.0 million in October.

44 companies currently qualify for inclusion, with 30 filing in U.S dollars and 14 in the Canadian currency, which is down from 54 at the end of August due to the change in the qualifying standards. Since our last report in late August, there were just a few companies reporting, with no new additions.

In May, we began to include an additional metric, “Adjusting Operating Income”, as we detailed in our newsletter. The calculation takes the reported operating income and adjusts it for any changes in the fair value of biological assets required under IFRS accounting. We believe that this adjustment improves comparability for the companies across IFRS and GAAP accounting. We note that often operating income can include one-time items like stock compensation, inventory write-downs or public listing expenses, and we recommend that readers understand how these non-cash items can impact quarterly financials.

One trend we have observed is that many of the companies are now providing pro forma revenue as well, which is an attempt to more accurately portray the operations by taking into account the results of closed and pending acquisitions as the multi-state operator (MSO) space rapidly consolidates. Our rankings include only actual reported revenue.

In September, there were reports from only C21 Investments (CSE: CXXI) (OTC: CXXIF), which grew 27% from the prior quarter and was almost profitable, and DionyMed Brands (CSE: DYME) (OTC: DYMEF), which saw a sharp decline in revenue from the prior quarter.

American Dollar Reporting – Public Cannabis Company Revenue Tracker

The only company expected to report in October is MedMen (CSE: MMEN) (OTC: MMNF), which has pre-announced revenue for its fiscal Q4 ending in June of $42 million. Investors will be looking for signs of spending control, as the company’s adjusted operating loss represented 157% of sales in Q3.

Of the companies that report in Canadian dollars, Aurora Cannabis (TSX: ACB) (NYSE: ACB) and Supreme Cannabis (TSX: FIRE) (OTC: SPRWF) reported their June fiscal year-end financials, while  Fire & Flower (TSX: FAF) (OTC: FFLWF) reported its FY20-Q2 numbers. Aurora Cannabis moved to the top of the list as its sales grew almost 400% from a year ago. Supreme grew almost doubled sales from the prior quarter as it approached break-even on adjusted operating income. Fire & Flower, which began generating revenue just three quarters ago, grew revenue 16% over the prior quarter.

Canadian Dollar Reporting – Public Cannabis Company Revenue Tracker

In October, companies expected to report financials include Aphria (TSX: APHA) (NYSE: APHA), which has scheduled a call on October 15th to discuss the quarter ending August 31st. According to Sentieo, Aphria is projected to report Q1 revenue of C$133 million, just slightly higher than in its Q4 results of $128 million. The vast majority of its revenue is not related to cannabis (pharmaceutical distribution), so investors will most likely be looking at cannabis revenue and comparing it to the C$28.6 million the company generated in the prior quarter from that line of business. Analysts project that EPS will be -C$0.01 compared to the C$0.05 in the prior quarter, when the company benefited from a one-time accounting gain. Additionally, HEXO Corp (TSX: HEXO) (NYSE: HEXO) is expected to report its fiscal year ending July 31st by month-end. Analysts project that sales could almost double from C$13.0 million in Q3 to C$25.3 million. EPS are expected to decrease from -C$0.04 to -C$0.05.

Visit the Public Cannabis Company Revenue Tracker to track and explore the complete list of qualifying companies. We have recently created a way for our readers to access our library of Revenue Tracker articles. For our readers who are interested in staying on top of scheduled earnings calls in the sector, we have have created and continually update the Cannabis Investor Earnings Conference Call Calendar.

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Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online communities 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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