Canopy doubles its cannabis sales
Firm solidifies lead over rival Aurora, as it reports $21.7M in quarterly sales
Canopy Growth Corp. strengthened its lead in the cannabis market in the third quarter, more than doubling its year-overyear revenue in the three months leading to Dec 31.
The company, which released Q3 earnings on Wednesday, reported $21.7 million in quarterly sales, up from $9.8 million the year before. That puts Canopy’s revenue at nearly twice that of its nearest competitor, Aurora Cannabis Inc.
Revenue growth came from a brisk increase in patient numbers, more sales of oils and extract products, and increased shipments into Germany. The company reportedly added 6,000 patients between the end of the second and third quarters, bringing total registered patients up to 69,000.
At the same time Canopy sold 2,330 kilograms, or kilogram equivalents, of cannabis at an average sales price of $8.30 per gram, up from 1,245 kilograms in the same quarter last year at an average of $7.36.
“The higher average price was due primarily to the improved mix of oil products, including oil-based soft gel capsules, and partly to the higher selling price of medical cannabis sold in Germany. The average selling price in Germany was about $12.61 per gram,” said Tim Saunders, Canopy ’s chief financial officer, on a call with analysts.
The company posted quarterly net income of $11 million, up from $3 million the previous year.
With a buildup of inventory ahead of recreational legalization, and new facilities that have yet to come online, the company saw its adjusted EBITDA — again, not a standardized accounting measure — decline to a loss of $7.1 million. That situation, however, is likely to change in the coming months, said Saunders.
MedReleaf Inc., which reported $11.4 million worth of sales on Tuesday, likewise saw revenue growth, although of a more modest 9 per cent compared to the previous year. The company sold significantly more cannabis, especially in oil form, than in Q3 last year. But lower sales prices were a drag on earnings.