And while there may be lots of excitement about that and removing many barriers for cannabis producers, that doesn’t mean it will be a smooth ride for investors and businesses.
Legalization has created many challenges for businesses, and one cannabis executive believes the U.S.
And excise taxes can significantly chip away at a company’s top line; over the first six months of this year, excise taxes of 5.4 million Canadian dollars have eroded away more than 22% of Sundial’s top line.
Although excise taxes alone can’t be blamed on the poor bottom line, Sundial and other producers are operating in a challenging industry where competition is fierce due to regulators simply allowing too many producers.
According to an analysis from MJBizDaily, the cannabis site estimates that since legalization in 2018, not even one-fifth of the cannabis produced in Canada has made it into retail stores.
Although Tilray’s CEO Irwin Simon was dismissive of craft, referring to them as “ankle biters,” they pose a serious challenge to the industry’s top companies and their ability to generate revenue growth.
Canopy Growth released its latest earnings numbers earlier this month, and its net revenue of CA$131.4 million for the period ending Sept.
Federal legalization of marijuana will solve many problems for multi-state operators.
will repeat the same mistakes as Canada when it legalizes marijuana, top cannabis companies such as Trulieve Cannabis and Curaleaf Holdings may find it difficult to grow their sales.
And that’s why it’s important to consider cannabis companies that are reporting strong bottom lines today, because it may be difficult to do so in the future.