Who Sold the Most Marijuana Last Quarter?
Added: (Fri Apr 05 2019)
Pressbox (Press Release) -
Who Sold the Most Marijuana Last Quarter?
With the recent opening of Canada’s recreational cannabis market in October of 2018, The big names in the cannabis sector could capture Billions of dollars in sales, as consumers will be looking at changing from illicit black market dealers to licensed cannabis retailers. The huge potential to profit from Cannabis is revealing a ‘green rush’ of investment with some cannabis growers already seeing benefits more than others.
Ranking the biggest names.
Over 100 cannabis growers are licensed to be part of Canada’s thriving cannabis marketplace, however Canopy Growth, Aurora Cannabis, Aphria, Tilray, HEXO, Canntrust Holdings, and Cronos Group are the seven biggest cannabis cultivators listed on the US stock exchanges.
Canopy Growth was already Canada’s biggest name in cannabis prior to the start of recreational cannabis being legalized, with over 30% of the medicinal cannabis market share. Canopy as of the start of this financial year has over 83,000 active medical cannabis users, which is more than any other medical cannabis provider. so far Canopy has been able to successfully use its existing platform to create a large carving of market share into the recreational market. Adult use sales, accounted for over $58 Million CAD of its $83 Million CAD net profit in the fourth quarter of 2018. Overall Canopy Growth sold a little over 10,000 kilograms and equivalent of cannabis last quarter which was over 44% than the next biggest competition Aurora Cannabis.
However Aurora Cannabis was not taking this lying down in their fourth quarter, Auroras aggressive M&A strategy, including the takeover of CanniMed and MedReleaf in 2018, allowed them to deliver the second highest year over year revenue growth of the top cannabis companies. Its medical cannabis consumer count, totaled over 73,000 in December, and their net sales topped out at a respectable $54.3 Million USD in the final quarter.
Aphria, who is still a large way behind Aurora needs to more than double up to catch up, but looking at Aphria’s sales figures and statistics, these suggest a solid lock to be number three in the cannabis sector. Closing in on Aphria we have Tilray and CannTrust who look to be the best competition that has a chance of taking over one of the top spots, but Aphria’s lead is much larger than it appears. Tilray and CannTrust’s fiscal quarters ended on December 31st however Aphria’s financial results only took them up until November 30th. What this means is that Canada’s retail sales for cannabis were $56 Million CAD in December, showing that Aphria’s figure do not accurately reflect how the company stands up against the others. Meaning that the true battle is for fourth place between CannTrust and Tilray.
HEXO another big name could be starting to have a good run for fourth after posting strong results in their most recent quarter, which ended on January 31st, We know what Tilray and CannTrust;s Sales figures were in the fourth quarter, however what we don’t know yet, is what their sales were for January. Now with Cannabis retail sales being 23% higher in January than they were in October when recreational cannabis was legalized, HEXO’s results should be taken with a grain of salt. Its likely, that given that the sales of cannabis are seeing better and better results as time passes, that Tilray and CannTrust will stay ahead of EXO for now.
The underdog and quite possibly one of the Cannabis Cultivators who show most potential is Cronos Group, who although ranked last in sales of Cannabis in the most recent quarter has been seen to be making a large number of advancements, and partnerships with other cannabis growers. Cronos group, being a relatively diverse company could bring alot more to the field in the second quarter of 2019 with a whole heap of new innovative products.
Matthew stone - Midway Management