Non-medical cannabis sales rose 21% YTD in Canada - Cantor

Sep. 13, 2022 2:56 PM ETTilray Brands, Inc. (TLRY), TLRY:CAVFF, CGC, ACB, OGI, CRON, HEXO, SNDLBy: Dulan Lokuwithana, SA News Editor27 Comments

Medical Oil Cannabis - marijuana oil, resin and flowers with Canada flag on the mirror black background.

Kazyaka/iStock via Getty Images

Recreational cannabis sales in Canada grew 21% in 2022 through August, outperforming most U.S. states, Cantor Fitzgerald notes, citing data from industry research firm Hifyre and government agency for statistics StatCan.

Meanwhile, the daily average of sales gained 5% in Jul. – Aug. from Q2 2022, when the figure rose 9% sequentially compared to a ~2% decline in the prior quarter.

Per the latest Hifyre data, Canadian recreational sales dropped 1% sequentially in Aug. after 7% growth in July.

Cantor continues to be bullish on its Overweight rated Canadian LPs, OrganiGram Holdings Inc. (OGI) and Village Farms International, Inc. (VFF), noting that the average daily sales of the companies rose 8% and 12% in calendar Q3, respectively, compared to 5% market growth.

Meanwhile, the top three players in the recreational space, HEXO (HEXO), OrganiGram (OGI), and Tilray (NASDAQ:TLRY), each had slightly over 8% of market share in Aug. Cantor added, with Neutral ratings for all three stocks.

However, the firm issues an Overweight rating on Aurora Cannabis (ACB) due to its international footprint and domestic medical business.

According to Hifyre data, TLRY has recorded an 11% sequential growth for recreational sales in the Aug. quarter after three consecutive declines, while OGI has recorded a 15% growth.

Other Canadian LPs in Cantor’s coverage include Neutral rated Canopy Growth (CGC) and Sundial Growers (SNDL) along with nonrated Cronos (CRON),

Read: Citing Cantor analyst Pablo Zuanic, Seeking Alpha contributor Stone Fox Capital argues that the only growth driver for TLRY appears to be Germany, where the company has no license for recreational cannabis yet.

Recommended For You

Comments (27)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.