RE:RE:RE:RE:Thoughts on the CCIts like you just cant help but be negative.
The Distilate was aged. No clue if it was THC or CBD it was just a hunch. If its aged then its beyond its shelf life I would imagine which is probably over a year old. But again, just a hunch.
They addressed the decline in medical sales in the conference call. And sure it sounds like an excuse, if you go back and check the quarterlies it checks out. Q3 is seasonally a slow quarter for medical sales. That coupled with the fact that health Canada was extending scripts caused a major issue for any customer looking to migrate to a new LP. Medical sales were down 23% QoQ but up 31% YoY, so frankly they're still scaling that side. Meanwhile adult use is up 57% QoQ and 2044% YoY. The company is proving it can grow its operations. Now the gross margins we're down 19% in the adult use side (still up 8% YoY), which I spoke to in my last post. Pre-rolls have less margin than other 2.0 products and the company made a real push into that segment as the brand picked up traction. Using outdoor instead of greenhouse for the input material there will draaaaaaaastically change the margins on those.
Medical margins were up 6% QoQ and 21% YoY, so they're honing in those sales regardless of the seasonal downturn.
So to your "They sold 5100 kg less than last quarter" Yes, that is a good thing. They arent dumping bulk onto the market and did relatively the same revenue selling 65% less product.
So yes, the average sales per gram for medical decreased.... BUT THE MARGINS INCREASED.
It depends what mix of product is selling.
You must be a real gem at parties.
KeyserShoze wrote: They sold 5100 kg less than last quarter. That isn't a good thing. Recreational sales increased while medical and bulk decreased. The average sale price per gram for medical decreased as well. Kind of wierd. Isn't Unifor supposed to increase medical sales? Bulk sales price per gram is also deceiving. The $1.26 price per gram was high due to old inventory of cbd distillate that they got rid of at a loss. Another wierd sale since CBD has been touted by bullish posters as a potential future revenue growth. Why was it sold at a loss if their is such demand in this category. A little bit of desperation maybe? Without that sale q3 would have been worse. It seems their overall costs are somewhere between $10 to $12 million per quarter. That is if they aren't writing down anything. But your post is kind of ironic since this upcoming q4s biggest revenue driver will be outdoor bulk sales.
IMB wrote:
finally something to read. Did you ever look at the ratio of kgs sold between their catagories? The wholesale has dropped every Q. this year, so with the right mix they don't have sell as many kgs to make a profit. This Q, in the past, has always been their biggest and they are saying that there is on going orders to Germany. So time will tell if they have gotten the mix right.