Canopy Growth Corp (TSX:WEED) (NYSE:CGC), swung to a staggering net loss for its fiscal fourth quarter but saw a pickup in revenue helped by its robust business in Canada and Germany.
An increase in spending in the quarter contributed to the net loss as the Canadian medical cannabis company prepares for the roll-out of legalized cannabis across Canada.
“Canopy Growth is uniquely positioned to go beyond our current commitments to provincial agencies and cannabis retailers in order to successfully open the regulated recreational cannabis market in Canada as a producer of choice nationwide,” said Canopy’s chairman and CEO Bruce Linton.
The company’s net loss for its fourth quarter ended March 31 came to C$61.5mln, or C$0.31 per basic and diluted share, which was more than five times its net loss of C$12mln, or C$0.08 per share in the same period a year ago.
But the company spent more in the quarter ahead of Canada's legalization of cannabis, with its net cash used for investing activities climbing to C$93.2mln in the quarter from C$1.16m in the same period last year.
For the full fiscal year, its net loss swung to C$70.4mln, or C$0.40 per share, up from C$7.5mln, or C$0.06 per share in the previous fiscal year.
Its fiscal fourth-quarter revenue came to C$22.8mln, which was up 55% from the same period a year ago. Revenue for the fiscal year amounted to C$77.9mln, which was up 95% from the previous year’s revenue of C$39.9mln.
Oil sales, including soft gel capsules, comprised 23% of fourth-quarter product revenue. Sales in Canada were strong as the company secured online cannabis retail licenses in Manitoba, Newfoundland and Labrador and Saskatchewan. It also saw booming interest from Germany, which accounted for C$2.3mln in quarterly sales.
“With the recent launch of our Spectrum Softgels, strong sales in Canada and Germany and the expansion of our global footprint into Africa and further into Europe and Australia, we continue to drive our global leadership position in medical cannabis forward,” said Linton.
Canopy’s cash and cash equivalents jumped in the quarter to C$322.6mln, up from C$220.8mln in the year-ago period.
Separately, Canopy announced that its current president Mark Zekulin, has been tapped as its co-chief executive as well, and will report to chairman and CEO Bruce Linton.
In pre-market trade, Canopy Growth shares inched 2.3% lower to US$30.25.
Contact Ellen Kelleher: [email protected]