Canopy Growth shares slump as cannabis company earnings reveal quarterly loss
Shares in Canopy Growth Corp., the biggest cannabis company in Canada, sold off on Friday after the company showed a bigger-than-expected loss last quarter, and slowing sales of pot in Canada.
The company revealed late Thursday that it sold 9,326 kilograms worth of cannabis in the first three months of 2019. That's up from 2,528 kilograms sold in the same period a year ago — before the drug was legalized in Canada — but down from the 10,102 kilos it sold in the last three months of 2018, the period when legalization happened.
Net revenue rose 312 per cent to $94.1 million, from $22.8 million a year earlier and better than analysts were expecting.
But the company still posted a net loss of $323.4 million during the quarter, up from a loss of $54.4 million a year earlier.
Overall, the stock market reaction to the numbers was negative, as the shares sank by more than seven per cent on the TSX to just over $53 a share.