Canopy Growth’s first-quarter results
Canopy Growth (CGC) (WEED) is well-known when it comes to investing in the cannabis sector. The company reported its earnings for the first quarter of 2019 on August 14. Canopy Growth is one of the largest cannabis producers by capacity. The company has aggressively built its portfolio to serve Canadian recreational cannabis users.
Canopy Growth reported a loss
Canopy Growth reported 25.9 million Canadian dollars in sales, which grew by 63% YoY (year-over-year). The company’s average selling price rose 12% to 8.94 Canadian dollars during the same period. Canopy Growth’s total registered patients grew 40% YoY to 82,700, while the total kilogram equivalents sold rose 47% to 2,695 kilograms during the quarter.
While the numbers are positive, Canopy Growth reported a large loss of 90 million Canadian dollars, which ballooned from ~9 million Canadian dollars in the same quarter in 2017. On August 14, Canopy Growth stock lost almost 8.3% and closed at 32.2 Canadian dollars. Other cannabis companies (HMMJ) including Aphria, (APHQF), Aurora Cannabis (ACB) (ACBFF), and Tilray (TLRY) also had lower stock prices on August 14.
Canopy Growth’s loss is due to its ongoing investments in the cannabis sector. Players are preparing to grab a piece of the recreational cannabis market in Canada. On August 14, cannabis stocks were also lower because Ontario announced that it pushed back cannabis sales to April 2019 from October 2018.
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