Revenues Jump
The bottom-line was negatively impacted by a 34% increase in operating expenses. Meanwhile, net revenues climbed 49% annually to C$123.8 million. Revenues, excluding portfolio restructuring charges, move up 13%.
Revenues from Canadian business-to-business recreational cannabis declined 11% compared to last year and increase 8% sequentially. Total Canadian cannabis revenue was down 5% year-over-year and up 9% from the previous quarter.
New CEO
During the quarter, Canopy Growth appointed David Klein as its new chief executive officer. Klein, a former CFO of Constellation Brands (STZ), replaced Mark Zekulin.
“In Q3 we executed across Canada, in our international markets, and in our strategic acquisitions to drive revenue growth. We have a lot of work to do. We are eager to capitalize on the opportunity to create an unassailable position through a tight focus on the consumer and on critical markets,” said Klein.
Currently, the cannabis industry is going through a difficult phase, and Canopy Growth is no exception. The unfavorable macroeconomic conditions and uncertainties related to the legalization of recreational cannabis are the main challenges facing the companies.
Widespread Slump
Earlier this week, Aurora Cannabis (ACB) reported a wider net loss for its most recent quarter, reflecting muted sales and a decline in selling prices. Aurora has launched its Cannabis 2.0 products across the Canadian market.
Related: Canopy Growth Q2 2020 Earnings Conference Call Transcript
Shares of Canopy Growth gained early Friday after closing the previous session lower. The stock has dropped about 59% in the past twelve months, paring most of the gains it achieved in the early part of last year.