Please ensure Javascript is enabled for purposes of website accessibility

Ontario Cannabis Store Online Transactions Soar 82% in March

By David Jagielski – Jun 8, 2020 at 6:42PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

COVID-19 sent cannabis customers online in record numbers.

The Ontario Cannabis Store (OCS) has released data on its sales over the past 12 months, from April 1, 2019, until March 31, 2020. In total, for the full fiscal year, the OCS website generated 71.4 million Canadian dollars while the government-run retail stores brought in CA$313.7 million in revenue. 

In March, the OCS' online store processed a record number of transactions due to stockpiling as a result of the COVID-19 outbreak. There were 114,400 transactions in March, which was up 82% from the 62,800 that it processed in February. The next closest month was the OCS' first month back in April, when there were 74,500 transactions.

Part of the reason for the surge, besides COVID-19, is likely due to pricing. During the first quarter, the OCS online store averaged a price per gram of CA$9.48. That would end up falling to CA$7.48 by the fourth quarter. That's lower than the CA$9.61 that physical retail stores averaged during the last quarter.

Marijuana store sign.

Image source: Getty Images.

Aurora proving to be a dominant brand

The OCS' report also broke down the top five brands, and Ontario-based Aurora Cannabis (ACB -2.40%) was popular among customers. Dried flower was the largest product category with CA$47.3 million sales on the OCS website and CA$227.6 million in stores. Aurora dominated in that segment with both its Aurora brand and San Rafael '71 brand each making up 8% of sales both online and in retail stores.

In the edibles segment, the Aurora Drift brand made up 27% of revenue online and 25% in store.

The cannabis stock's coming off a third-quarter earnings report where its net sales were up 16% year over year.

David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Aurora Cannabis Stock Quote
Aurora Cannabis
ACB
$1.22 (-2.40%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.