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This article discusses the statistics on Harvested Cannabis Inventory 2020. Cannabis or marijuana is a psychoactive drug derived from the Cannabis plant. So like any other crop, cannabis too needs a solid cultivation process that would result in a plentiful harvest.
Importance of tracking harvested cannabis inventory
As of 2018, the global legal cannabis market was worth the US $ 12 billion and is expected to reach the US $ 166 billion by 2025. As legalization of marijuana is on the rise, inventory management and forecasting cannabis sales have become a primary concern for cannabis growers and suppliers.
Harvested cannabis inventory as a metric
In this case, harvested cannabis refers to the carrying value of the closing inventory in a particular quarter. While a relatively higher closing inventory results in higher gross profit, it also means fewer sales. So as an investor, the inventory of harvested cannabis cannot be looked at in isolation but must be combined with the units on hand, the volume of sales and the net profit as well.
Industry performance based on harvested cannabis inventory
Aurora Cannabis Inc. witnessed a 37% rise in its closing inventory from Q2 FY 2019 to Q3 and reached CAD 105, 882. In Q3 FY 2018, there was a 175% rise from Q2. The company’s sole decline in over 10 quarters was of 19% from Q3 FY 2018 to Q4.
Aphria Inc. too had an 18% decline in its harvested cannabis from Q3 FY 2018 to Q4. This was preceded by a 53% rise in Q3 FY 2018 from Q2, which was just marginally less than the 54% rise in Q3 FY 2019 from Q2. The company’s highest QoQ rise was of 92% in Q4 FY 2017.
Nevada’s largest cannabis cultivator Flower One had a triple digit rise quarterly rise at the beginning of the current fiscal year. For instance, there was a 364% growth in closing inventory from Q1 to Q2, succeeded by a 120% growth from Q2 to Q3. In Q1 FY 2019 there was just a 4% rise from Q4 FY 2018.
Canada’s largest third-party extraction company Valens Groworks Corp. recently rebranded itself to The Valens Company. In each of the first two quarters of 2019, the company had a decline of 2% QoQ. In the third quarter, there was a rise of 9% from Q2.
Planet 13 Holdings Inc., reported a 262% increase in its harvested cannabis value from Q2 to Q3 of FY 2018. Since then, its inventory has been increasing at a decreasing rate per quarter, with an 11% growth from Q1 to Q2 FY 2019. In Q3 FY 2019, there was a 13% fall from Q2.
Licensed medical marijuana producer OrganiGram Holdings, had a 65% rise in Q3 FY 2019 from Q2. This was preceded by a decline of 26% in Q2 FY 2019 from Q1 and another decline of 31% from Q4 FY 2018 to Q1 FY 2019.
Ontario based VIVO Cannabis Inc., faced a whopping 121% increase in its closing inventory of harvested cannabis from the first to the second quarter of FY 2018. In comparison, there was just a 27% increase from Q4 FY 2017 to Q1 FY 2018.
The dried flower and pre-rolls producing Flowr had a 62% increase from Q1 FY 2019 to Q2. This rise fell to 34% from Q2 FY 2019 to Q3, closely matching the 35% rise from Q3 FY 2018 to Q4. In Q1 FY 2019, there was just a 6% rise QoQ.
Vertically integrated cannabis company – 1933 Industries faced a 235% rise from Q1 FY 2018 to Q2. In 2019, there was a 34% decline from Q1 to Q2. The maximum decline in the company’s harvested cannabis inventory was off 90% from Q4 FY 2018 to Q1 FY 2019.
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