Canopy Growth Increased Cannabis Prices in the Fourth Quarter


Jun. 21 2019, Updated 2:01 a.m. ET

Average selling prices rise

The price at which cannabis companies would sell to recreational customers was highly debated. Some were concerned that the commodity nature of cannabis would put significant downward pressure on the selling prices for the companies.

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Canopy Growth (WEED) (CGC) was able to increase its selling prices to recreational customers during the fourth quarter. The company sold recreational cannabis at an average price of 7.28 Canadian dollars per gram compared to an average selling price of 6.96 Canadian dollars per gram. However, sequentially, the company’s gross revenue from its recreational segment fell to 68.9 million Canadian dollars from 71.6 million Canadian dollars.


The company’s average selling price per gram to the medical segment in Canada fell to 8.17 Canadian dollars in the fourth quarter from 9.8 Canadian dollars per gram. On the other hand, the company was able to increase its selling price to the international medical segment to 13.91 Canadian dollars per gram from 13.3 Canadian dollars per gram. Unlike recreational cannabis, medical cannabis was sold throughout the last year, making the year-over-year comparison more appropriate. The company’s medical revenue grew by about 6% to 78.9 million Canadian dollars.

Canopy Growth’s average selling price per gram in all segments combined increased to 7.49 Canadian dollars per gram in the fourth quarter of 2019 from 7.33 per gram in the third quarter.

Canopy Growth’s peer Aurora Cannabis (ACB) doesn’t provide a breakdown of recreational and medical average selling prices but the company sold dried cannabis for an average of 6.2 Canadian dollars per gram in its most recent quarter and cannabis extracts for an average of 10 Canadian dollars per gram.


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