Canopy Growth earnings results
Canopy Growth (WEED) (CGC) reported its earnings late on June 20. The company reported net sales of 94.1 million Canadian dollars in Q4, which beat analysts’ estimate of 91 million Canadian dollars. The company also reported annual sales of 226.3 million Canadian dollars, which fell short of analysts’ estimate of 229.1 million Canadian dollars.
In the fourth quarter, Canopy Growth’s sales grew by almost 13% sequentially from 83 million Canadian dollars in Q3 2019, which was the first quarter that included sales from recreational cannabis. YoY, Canopy Growth’s sales grew by about 191%. However, the year-over-year figure does not represent sales from recreational cannabis for the full year, as it became legal in Canada in October 2018.
Revenue growth drivers
According to Canopy Growth, its revenue grew from extraction services, value-added products, and clinical partners with a total 9,326 kilograms of cannabis products sold in the fourth quarter alone. In the third quarter, Canopy Growth sold about 10,102 kilograms of cannabis products. Note that the company sold fewer kilograms in the fourth quarter of 2019 compared to Q3 2019, but it generated more revenue in the fourth quarter.
Canopy Growth stock closed about 0.46% higher yesterday, while peer Aurora Cannabis (ACB) declined by 0.53%, and Aphria (APHA) was almost flat. The Horizons Marijuana Life Sciences ETF (HMMJ) closed 1% higher.