The Canadian cannabis stocks on our list have either gained (Aurora Cannabis Inc) or lost (Canopy Growth Corp) market share over the past two quarters
SmallCapPower | September 23, 2019: Market share is often used as an important metric to gauge a company’s success in comparison with its peers. It is also the most effective metric to judge the effectiveness of a company’s branding, compared with the competition. Market share analysis allows investors to quantify the impact of marketing strategies and management execution have had on the business. Today we have weeded the four Canadian cannabis stocks with the highest market share in Canada in addition to quarter-over-quarter changes in their market share. Of note, it is interesting to see Aurora and Aphria gain market share from Q1/19 to Q2/19, while Canopy and Organigram lost market share over the same time period. Aggregate sales data was collected from Health Canada and converted to kilogram equivalents. Data was compiled by the Weed Stocks Wiki.
Figure 1: Canadian Cannabis Market Share
Source: The Weed Stocks Wiki
*Share price data as at September 19, 2019, data obtained from S&P Capital IQ
Aphria Inc. (TSX:APHA) – $8.04
Aphria produces and sells medical and recreational cannabis-derived extracts in Canada. The Company currently has a 1.1M sq. ft Leamington greenhouse facility that yields 100,000 kg per year. On August 1, Aphria Inc reported its financial results for the fourth quarter and fiscal year ended May 31, 2019. These results featured net revenue of $128.6M in the fourth quarter, an increase of 75% QoQ. Notably, the Company more than doubled its kilograms sold from the previous quarter, selling 5,574 kg of cannabis relative to 2,637 kg in the previous quarter.
- Market Cap: $2,025.6M
- 90-Day Return: -10.0%
- YTD-Return: +3.4%
- 90-Day Average Trading Volume: 1,920,400
- Market Share Q1/19: 7.3%
- Market Share Q2/19: 12.0%
- Change in Market Share QoQ: +4.7%
Aurora Cannabis Inc. (TSX:ACB) – $6.83
Aurora Cannabis is a vertically-integrated and horizontally-diversified cannabis company that is located in Edmonton, Alberta. Currently, the Company has a funded capacity that exceeds 625,000kg per year. Aurora Cannabis has sales operations in 25 countries across five continents. The Company has 15 global production facilities with 3 EU GMP certified, 40 clinical studies running or completed and over 77,000 medical patients served. On August 18, 2019, Aurora announced the completion of its acquisition of Hempco Food and Fiber Inc. for ~$63.4M. This provides the Company with access to low-cost, high-volume, raw hemp material for the extraction of CBD and other cannabinoids. Of note, Aurora reported ~5,600 kg in wholesale sales. Management indicated that this was a one-off wholesale sale of trim to a cannabis extractor and may not be repeated in subsequent quarters.
- Market Cap: $7,026.4M
- 90-Day Return: -30.9%
- YTD-Return: -1.6%
- 90-Day Average Trading Volume: 4,170,300
- Market Share Q1/19: 25.4%
- Market Share Q2/19: 38.2%
- Change in Market Share QoQ: +12.8%
Organigram Holdings Inc. (TSX:OGI) – $5.48
Organigram is a licensed producer of cannabis and cannabis-derived products in Canada for the recreational and medical market. The Company has a strong brand portfolio that includes The Edison Cannabis Company, Ankr Organics, Trailer Park Buds and Trailblazer. Organigram’s main facility is located in Moncton, New Brunswick. On July 26, 2019, the Company announced that it entered into an advance payment and purchase agreement with 703454 N.B. Inc., through which Organigram will pre-fund hemp purchases to receive access to, at most, 60,000 kg of dried hemp flower that is expected to be harvested in Calendar 2019 for extraction into CBD isolate. The Company reported its Q3/19 financial results on July 15, 2019, which showed net revenue of $24.8M through sales of about 5,130-kilogram equivalents. This is down 7.8% when compared to its Q3/18 revenue of $26.9M.
- Market Cap: $855.9M
- 90-Day Return: -34.5%
- YTD-Return: +15.7%
- 90-Day Average Trading Volume: 661,650
- Market Share Q1/19: 14.2%
- Market Share Q2/19: 10.1%
- Change in Market Share QoQ: -4.1%
Canopy Growth Corporation (TSX:WEED) – $34.92
Canopy Growth is the largest cannabis company listed by market cap on the TSX and NYSE. Currently, the Company has the largest licensed production platform in Canada, with over 600,000 sq.ft of production space. Additionally, Canopy Growth has secured the necessary agreement to export medicinal cannabis to Australia, Brazil, and Germany. On August 15, 2019, the Company announced Q1/19 financial results: net revenue fell 4% to $90.5M (was $94.1M in Q4/18). This follows an announcement from July 3, 2019, when Canopy announced that CEO Bruce Linton would be stepping down and a replacement would be found by majority investor Constellation Brands (NYSE:STZ). Canopy Growth generated $10.5M in international revenue during its last-reported quarter, primarily from its acquisition of German-based C3 Cannabinoid Compound Company, which sells full spectrum cannabidiol-based medicines in Germany.
- Market Cap: $12,147.5M
- 90-Day Return: -36.9%
- YTD-Return: -8.2%
- 90-Day Average Trading Volume: 1,830,440
- Market Share Q1/19: 25.9%
- Market Share Q2/19: 22.7%
- Change in Market Share QoQ: -3.2%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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