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Canopy Growth’s Yearly Revenue Nearly Triples

June 25, 2019

Canopy Growth saw revenues jump sharply in its fiscal year ended in March, although losses also mounted, owing to investment costs. The company, which is the largest and most valuable cannabis group worldwide, generated C$226.3 million ($171.5m) in annual net revenue, up 191% from fiscal 2018. C$140.5 million ($140.5m) of gross revenue came from the Canadian recreational market and C$78.9 million ($59.8m) was attributable to global medical marijuana sales. Net revenue for the fourth quarter hit C$94.1 million ($71.3m), up 13% from the preceding quarter.

Canopy’s adjusted EBITDA amounted to a loss of C$257 million ($194.7m) in fiscal 2019, driven in large part by C$154.4 million ($117m) of sales and marketing expenses as they ramp up brand-building and promotional campaigns for their brands Tweed, Tokyo Smoke, Spectrum Therapeutics, and others. Canopy has also made a slew of acquisitions in the last year. It’s building a global presence with purchases like German cannabinoid pharmaceutical company C3 and establishing its U.S. strategy with the planned acquisition of Acreage Holdings. Constellation Brands’ $4 billion investment in Canopy continues to fuel expansion activity.

In volume terms, Canopy shipped 24,300 kilograms and kilogram equivalents of cannabis during the fiscal year, including 16,300 kg of dry flower and 8,000 equivalents of oil and softgels. Due to construction of additional grow space, its harvest is expected to jump to approximately 34,000 kg in the first quarter of fiscal 2020, with further licensed capacity still to come.—Danny Sullivan

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