Canopy Growth re­ports Q2 loss, more than dou­bles rev­enue

The Guardian (Charlottetown) - - BUSINESS/OBITUARIES -

Canada’s largest li­censed mar­i­juana pro­ducer re­ported a $1.3-mil­lion loss in its lat­est quar­ter de­spite dou­bling its rev­enue com­pared with a year ago, send­ing its shares lower in Tues­day trad­ing.

How­ever, Canopy Growth Corp.’s (TSX:WEED) chief ex­ec­u­tive Bruce Lin­ton told an­a­lysts on its earn­ings call that the com­pany is “driv­ing ahead,” point­ing to 27 pro­vi­sional pa­tents filed through its sub­sidiary Canopy Health In­no­va­tions and sev­eral in­ter­na­tional deals, such as strate­gic part­ner­ships in Den­mark and Ja­maica.

“The in­ter­na­tional op­por­tu­ni­ties are now in­creas­ingly hap­pen­ing,” Lin­ton said.

Canopy shares slipped two per cent in Toronto in af­ter­noon trad­ing to $20.02, as its lat­est re­sults fell short of an­a­lyst ex­pec­ta­tions.

The Smiths Falls, Ont.-based com­pany said Tues­day it lost $1.3 mil­lion at­trib­ut­able to share­hold­ers, or a penny per share for the quar­ter, com­pared with a profit of $5.4 mil­lion, or five cents per share in the same quar­ter last year.

Rev­enue in its sec­ond quar­ter to­talled $17.6 mil­lion, up from $8.5 mil­lion last year. That was slightly be­low the $17.99 mil­lion fore­cast by Bea­con Se­cu­ri­ties an­a­lysts.

Dur­ing the quar­ter ended Sept. 30, Canopy says it sold 2,020 kilo­grams and kilo­gram equiv­a­lents at an av­er­age price of $7.99 per gram, up from 1,169 kilo­grams and kilo­gram equiv­a­lents at an av­er­age price of $7.01 per gram dur­ing the same pe­riod last year.

It says the higher av­er­age price was due to an im­proved mix of oil prod­ucts, in­clud­ing oil-based cap­sules in­tro­duced late in its first quar­ter.

While the av­er­age sell­ing price was in line with what Bea­con Se­cu­ri­ties ex­pected, the an­a­lysts had fore­casted 2,237 kilo­grams and kilo­gram equiv­a­lents for the lat­est quar­ter.

Last month, Con­stel­la­tion Brands signed a deal to ac­quire a nearly 10 per cent stake in Canopy for $245 mil­lion.

ROBERT F. BUKATY

In this April 22, 2016, photo a mar­i­juana bud is seen at a med­i­cal mar­i­juana fa­cil­ity in Unity, Maine. Canopy Growth Corp. re­ported a $1.3-mil­lion loss in its lat­est quar­ter de­spite dou­bling its rev­enue com­pared with a year ago, send­ing its shares lower in Tues­day trad­ing.

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