Canopy Growth Revenues Jump In First Nine Months Of Fiscal YearFebruary 19, 2019
Canadian cannabis company Canopy Growth, part-owned by Constellation Brands, saw net revenues more than double to C$132 million ($99m) in the nine months through December. Third quarter shipment volume jumped 334% from a year before to just over 10,000 kilogram equivalents.
Constellation Brands’ massive investment in Canopy closed during the quarter, allowing the company to make a series of acquisitions. Canopy now controls the vaporizer company Storz & Bickel and the assets and patents of R&D company Ebbu. Canopy also acquired the retailer Tokyo Smoke, and plans to open 20 stores across Canada under that brand, as well as 20 more locations of its flagship Tweed retail brand, taking the number of Tweed outlets to 30. Expect such investments to continue, as Canopy is funneling C$30 million ($22.6m) more to its Canopy Rivers venture arm.
Among Canopy’s other moves, the company recently announced a plan to invest $100-$150 million in an upstate New York hemp operation, focused on “extracting, processing, and formulating cannabinoid-based consumer products and medicines.” Amidst all the investment, Canopy took a C$347 million ($261m) net loss for the nine-month period, although it turned a C$75 million ($57m) profit in the third quarter.—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.