Sales volume, mix, and selling prices are key drivers for Canopy Growth’s (WEED) sales as well as for companies (HMLSF) such as Aphria (APHQF), Aurora Cannabis (ACBFF), and MedReleaf (MEDFF). Let’s look at how Canopy Growth performed on these fronts.
In 3Q18, Canopy Growth’s sales volume (or kilograms sold) rose 87% year-over-year to 2,330 kilograms from 1,245 kilograms, while volumes rose just about 15% from 2,020 kilograms in 2Q18. During the quarter, the share of oil sales, which also includes softgel capsules, rose to 23% of the 3Q18 product revenue from 13% in 3Q17. Over the same period, the capacity expansion activities have also resulted in 51% year-over-year growth in kilograms harvested to 7,961 kilograms.
During the quarter, Canopy Growth’s selling price per gram also increased by 13% year-over-year to 8.3 Canadian dollars from 7.4 Canadian dollars in 3Q17. According to the company, the higher selling prices this quarter resulted from an improved mix of oil and oil-based products and from higher selling prices to the German medical cannabis market during the quarter. According to the company, its German wholly owned subsidiary sold cannabis at a price of 12.61 Canadian dollars.
Next, we’ll discuss Canopy Growth’s cost of production.