Canopy Growth (CGC) shares closed up 14% today after the company reported net revenue of $125 million, up 13% year-over-year.
Canopy Growth achieved gross margins of 34%, with total operating expenses down 14% year-over-year.
Adjusted EBITDA loss also decreased to $92 million.
Third Quarter Fiscal 2020 Highlights
- Maintained leading market share in retail, at an estimated 22%, of the Canadian recreation market as we saw a strong demand for both premium and value priced dried flower and pre-rolled joints
- Continued market share gains and increase in the number of patients, to over 76,700, in the Canadian medical cannabis market
- Named David Klein as new Chief Executive Officer
- Completed first shipments of cannabis-infused edible chocolates and JUJU Power 510 batteries in December 2019
- Storz & Bickel expanded product line with launch of Crafty+ vaporizer in November 2019
- Announced initial line of First & Free Hemp-derived CBD products and began sales online through www.firstandfree.com, one quarter ahead of Q4 2020 target
Statement: ”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.”
EVP & CFO Mike Lee, said in a statement: “We plan to take further steps to reduce our costs and right-size our business to ensure that we can generate a healthy margin profile and cash generation in the coming years.”
Canadian Market Highlights
- Recreational B2B sales increased 8% over Q2 2020, due to over 140 stores becoming active in the quarter and higher sales of premium dried flower and pre-roll joints
- Recreational B2C sales increased 16% over prior quarter, due in part to an 11% increase in same store sales
- Medical sales increased 5% over the prior quarter primarily attributable to the broadening of our brand and product offerings, including the availability of products from additional CraftGrow partners, as well as an increase in number of customers to over 76,700
- Storz & Bickel vaporizer revenue increased 46% over Q2 2020 due to solid organic growth and seasonal sales
- This Works revenue increased 42% over prior quarter due to strong organic growth
About Canopy Growth
Canopy Growth (TSX: WEED, NYSE: CGC) formerly Tweed Marijuana Inc., is a cannabis company based in Smiths Falls, Ontario. The company derives most of its revenue from dried cannabis, soft-gels, oils, hemp and cannabis devices. They operate retail stores across Canada under its award-winning Tweed and Tokyo Smoke banners. Canopy Growth (CGC) is one of the largest cannabis companies in the world with a market cap of $7.8 billion.
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