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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

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Legal weed sales in Nova Scotia down 5% to $25M

Since legalization, the number of weed stores has tripled in the province

Nova Scotia legal weed sales down 5%
NSLC's Lunenburg store opened last summer. The province currently has 36 stores. Image via NSLC

As interest in local cannabis products is on the rise in Nova Scotia, accounting for more than a quarter of legal revenue, overall sales slowed during the winter months.

On Tuesday, the Nova Scotia Liquor Corporation released its third-quarter earnings report for the period ended Jan. 2, showing that pot sales slipped 5 per cent to $25.2 million compared to the previous three-month period.

“Earnings were down due to increased sales of cannabis and local products, which both carry lower mark-ups, increased freight costs, and payroll increases,” reads the report.

Nova Scotian cannabis accounts for 26 per cent of all revenue, with local cannabis sales growing 20 per cent to $6.6 million from $5.5 million last quarter.

Nova Scotia cannabis and alcohol sales in Q3

Nova Scotia cannabis sales have gone up by almost 14 per cent since last year. Chart via NSLC

Altogether, cannabis and alcohol sales totalled $215 million, down more than 5 per cent since, but the markets have been recovering during the pandemic.

“It’s been a very difficult time for our licensee partners, and we’re pleased to see they’re continuing to experience the return of their valued customers,” NSLC president and CEO Greg Hughes said.

The crown corporation notes that the average transaction for cannabis fell by about $1 to $39.90, and the average price per gram has been dropping as the industry matures.

This quarter, the NSLC said the price per gram sank 16 per cent since last year, putting it at around $6.40 per gram.

Read more: Nova Scotia legal weed sales up 8% to $27M

Read more: Auxly shutters 2 Nova Scotia facilities

When the price per gram hit $6.50 last quarter, the crown corporation said legal prices were competitive with the illicit market.

Since legalization, the number of licensed stores has tripled, the NSLC notes, with 36 stores across the province after three more opened this quarter.

The provincial store has 13 Nova Scotian suppliers, including three micro-cultivators.

 

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