Canada Sales Blackbook at 10 AM Today
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Click Here for live webcast and materials at the time of the event. |
Some of the thoughts/topics to be discussed on the call:
- April sales were down 0.3% sequentially from the month prior but increased 73% YoY. We expect sales to continue to grow into 2021, to a total of $4 Billion for the year Vs. $2.6 Billion for 2020, a 53% increase.
- The growth of 2.0 Products continues with an 8% increase in the share of total sales from the year prior. Pre-rolled, Concentrates, and Vapes saw the most significant growth, all taking share from Flower sales.
- CGC sales overtook TLRY sales for the first time in April. TLRY sales have been decelerating for the past few months.
- Pure Sunfarms (VFF) and Organigram saw significant increases in sales and have been accelerating higher in recent months. VFF stock got crushed after their earnings call. We will dive into whether this move was justified
- VLNS is looking to make inroads in the competitive flower market and take share in 2.0 products.
More M&A Deals Coming
Trulieve CEO, Kim Rivers stated in an interview that she expects to see more M&A activity as pressure from federal and state officials mounts to legalize. Companies are quickly attempting to gain access to the markets of NY, NJ, and Virginia as recreational sales will be commencing in the coming months. Companies with the largest footprint in those states with a market cap of less than $2 Billion are currently ACRHF, CCHWF, CRLBF, VREOF, and TRSSF, are all likely acquisition targets.
CURLF Earnings
CURLF is a Long
Curaleaf reported Q1 revenues of $260 Million, up 170% YoY and 13% sequentially. Curaleaf's guidance for the quarter was $250-$255 Million. Q1 adjusted EBITDA was $63 Million, up 213% YoY and 16% sequentially. They achieved an adjusted EBITDA margin of 24%. Revenue guidance for Q2 is between $305 to $315 million, a 19% sequential increase which is ambitious but achievable. Shares of CURLF were up 3.11% on the day with the MSOS down .12%. Curaleaf CEO mentioned the new markets of NJ and NY have very strong prospects. Our estimates for their market size are $3.4 Billion and $1.2 Billion for just adult-use respectively. Curaleaf already has one dispensary in NJ and 4 in NY. The company raised approximately $300 Million in new capital during the first quarter to help support their ability to scale in new adult-use markets.
