!-- Global site tag (gtag.js) - Google Analytics --> Marijuana Business Magazine March 2020

Marijuana Business Magazine March 2020

Marijuana Business Magazine | March 2020 22 Less-explosive increases reported in Colorado, Nevada and Washington state California Companies Boost Marijuana Growth Rate InvestorIntelligenceSnapshot | Sales Growth By Craig Behnke and Mike Regan Mike Regan is an equity research analyst for Investor Intelligence. Reach him at miker@mjbizdaily.com. Craig Behnke is an equity research analyst for Investor Intelligence. Reach him at craigb@mjbizdaily.com I s 18% revenue growth good for a marijuana retailer? It depends on the growth rate of the overall market, since companies must be viewed in the context of the markets where they operate. Marijuana Business Magazine’s partnership with Headset provides access to retail sales data broken down by state and product. That information offers a baseline for investors judging individual company performance and understanding trends in each market. Year-over-year sales growth in the fourth quarter of 2019 totaled 36% for the four states monitored by Headset (California, Colorado, Nevada and Washington). But the growth rates vary widely by state. Despite the well-reported regulatory and operational challenges in California, that market posted 70% sales growth in the fourth quarter of 2019, reaching $745 million—a total nearly as large as Colorado, Nevada and Washington state sales combined. Legal retail sales in California increased by $1 billion in 2019. Nevada sales also continued to grow at double-digit levels, though the rate slowed to 23% in the fourth quarter from about 32% in the first and second quarters of 2019. Though both markets legalized adult-use marijuana sales in 2012, Colorado is growing much faster than Washington state. Colorado posted an annual sales growth rate of 18% in the fourth quarter of 2019, an acceleration compared with the 10% seen in the first quarter. Washington state, meanwhile, appears to be the most mature market, posting only 6% growth. So a retailer showing 18% revenue growth is doing extremely well if it is in Washington state, merely average if it is in Colorado and significantly underperforming if it is in California. First Quarter 2019 Second Quarter 2019 Third Quarter 2019 Fourth Quarter 2019 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Sales (Millions USD) Sales in Key Markets California Colorado Nevada Washington state Source: Headset Copyright 2020 Marijuana Business Daily, a division of Anne Holland Ventures Inc. Source: Headset Copyright 2020 Marijuana Business Daily , a division of Anne Holland Ventures Inc. 6% 71% 59% 73% 70% 10% 15% 22% 18% 6% 8% 12% 32% 31% 26% 23% First Quarter 2019 Second Quarter 2019 Third Quarter 2019 Fourth Quarter 2019 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Sales (Millions USD) Sales in Key Markets California Colorado Nevada Washington state Source: Headset Copyright 2020 Marijuana Business Daily, a division of Anne Holland Ventures Inc. % = Y/Y Growth

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