Categories AlphaGraphs, Earnings, LATEST, Other Industries

Canopy Growth’s shares tank over disappointing Q2 results

Canopy Growth Corporation’s (CGC, WEED) stock fell over 8.8% in premarket hours on Wednesday after the company reported a wider loss and missed estimates on revenue for the second quarter of 2019.

Total revenues were CAD23.3 million, up 33% versus the prior-year period and in line with management’s expectations leading into the opening of the recreational cannabis market. The consensus estimate was for revenue of CAD60 million.

The company reported a net loss of CAD330.6 million or CAD1.52 per share compared to a loss of CAD1.6 million or CAD0.01 per share last year. The 2019 results included expenses of CAD115.7 million or CAD0.52 per share.

Canopy Growth second quarter 2019 earnings
(Image Courtesy: Rick Proctor/Unsplash)

During the quarter, Canopy sold 2,197 kilograms and kilogram equivalents at an average sale price of CAD9.87, up from 2,020 kilograms and kilogram equivalents at an average price of CAD7.99 in the prior-year period, representing increases of 9% and 24% respectively. The average price increase was driven by changes in the mix of product sold, mainly a higher percentage of Softgel sales and sales to Germany.

Oils, including Softgel capsules, accounted for 34% of the product revenue during the quarter, reflecting an increased demand for value-added products that require lower active ingredient inputs and provide higher margins. The company saw an increase of 34% year-over-year in active registered patients to 84,400.

During the quarter, Canopy secured a CAD5 billion investment from Constellation Brands (STZ), which the company plans to use in achieving its core strategic objectives.

Earnings Preview: Canopy Growth is where the money is

Canopy completed the acquisition of HIKU during the quarter, adding the Tokyo Smoke retail network to its Tweed stores. Tokyo Smoke currently has three retail cannabis stores in Winnipeg and plans to add 12 additional stores in provinces that support private retail by September 2019. Tweed also plans to add 20 brick and mortar shops in provinces with private retail models by September 2019.

Inventory at September 30, 2018 amounted to CAD150.4 million and biological assets amounted to CAD20.7 million, together totaling CAD171.1 million.


Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Should investors worry about Micron’s (MU) weak Q4 results and guidance?

The semiconductor industry is a rapidly growing business segment that currently thrives on the digital transformation wave. The demand for memory chips and other semiconductor products increased over the years,

What has Bed Bath & Beyond (BBBY) outlined for this fiscal year?

Shares of Bed Bath & Beyond (NASDAQ: BBBY) were up on Friday, a day after the company delivered disappointing results for the second quarter of 2022. The company reported a

NKE Earnings: Highlights of Nike’s Q1 2023 results

Nike, Inc. (NYSE: NKE) has reported a decrease in net profit for the first quarter of 2023, despite a modest increase in revenues. The company's stock suffered a big loss

Add Comment
Viewing Highlight