Tilray’s (TLRY) average selling prices and sales volume improved year-over-year in the second quarter. The company sold 1,514 kilograms during the quarter, which grew 97% from the previous quarter. Similarly, the company’s average selling price per gram increased to $6.38 or 8.36 Canadian dollars from $6.2 or 8.12 Canadian dollars in the second quarter of 2017.
Average selling prices rose
Looking at the sales volume, there was an overall increase, which indicates an increased uptake in the demand for Tilray’s products. The growth in average selling prices was driven by “higher potency products and extract sales” according to the company.
Tilray added that the average selling prices were impacted negatively by wholesale revenues. Higher potency products and extract sales carry higher margins and could be an area of strategic focus for the company over wholesale. More companies (MJ) including Aurora Cannabis (ACB), Canopy Growth (WEED) (CGC), and Aphria (APHQF) could follow the same path.
In Sifting through the Big List of Cannabis Stocks to Find a Winner, we discussed how the cannabis space is getting crowded. More companies will likely focus on unique value-added products to gain market share.