August 14, 2019 / 9:24 PM / 2 months ago

Canopy Growth revenue misses estimates on lower medical cannabis sales

(Reuters) - Canopy Growth Corp (WEED.TO) (CGC.N) reported weaker-than-expected quarterly revenue on Wednesday, as the company sold lower volumes of medical cannabis, sending its U.S.-listed shares down 10% in extended trading.

The company sold 807 kg of dried medical cannabis in the first quarter, down 64% from the year-ago quarter.

Revenue jumped 249% to C$90.5 million but below the average analyst estimate of C$107.1 million, according to IBES data from Refinitiv.

Canopy said total kilograms and kilogram equivalents of cannabis sold rose to 10,549, an increase of 13% from the fourth quarter, largely helped by the legalization of recreational marijuana in Canada late last year.

Canada legalized the use of recreational marijuana in October, the first Group of 7 industrial nation to do so, and paved the way for a multi-billion dollar industry. Investors looking for a sign of profitability, have, however, shown concern over companies ramping up investment and posting bigger losses.

In July, Canopy fired its co-founder and Chief Executive Officer Bruce Linton after its biggest shareholder expressed disappointment over financial performance.

The Smith Falls, Ontario-based company’s net loss widened to C$1.28 billion ($961.32 million), or C$3.70 per share, in the quarter ended June 30, from C$91 million, or 40 Canadian cents per share, a year earlier.

Reporting by Debroop Roy in Bengaluru; Editing by Maju Samuel

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