The Canadian Cannabis Retail Landscape is starting to show signs of Significant Growth
Earnings season is just getting started for the cannabis sector and we hope to see a positive response from the market to company results.
Last week, Statistics Canada announced that $292.1 million (USD) (C$375.8 million) of recreational cannabis was sold in May. This amount is less than 1% higher than the amount of sales in April and we are favorable on the increase. Statistics Canada also updated the amount of recreational cannabis sales from April to be CA$373.3 million, which is slightly higher than the amount that was previously reported. (Technical420)
Breaking Down Performance by Province
When analyzing the Canadian provinces that accounted for most of the growth, British Columbia reported a 3.9% monthly increase in total recreational cannabis sales to be C$55 million.
Ontario is Canada’s largest cannabis market and the province accounted for C$151.6 million of recreational cannabis sales in May. When compared to April, Ontario recorded a slightly increase in sales and we will monitor how the province continues to perform
Alberta and Quebec are two emerging markets in Canada and account for a decent percentage of recreational cannabis sales. In May, the provinces generated C$65.4 million and C$50.5 million of recreational sales, respectively. These amounts were also slightly higher than what was reported in April and believe our readers should be aware of the trend.
High Tide Inc. (Nasdaq: HITI) (TSX Venture: HITI) has one of the largest cannabis retail footprint in Canada. Last month, the company released second quarter financial results and reported strong growth when compared to the prior quarter.
Although High Tide reported strong growth on several key operating metrics, the market responded negatively and the stock has lost more than 30% of its value since then. High Tide has fallen almost 80% from its 2022 highs and we are closely monitoring the trend as we believe the recent weakness is overdone.
