Canopy Growth Corporation announced its financial results for the first quarter ended June 30, 2019.
In first quarter fiscal 2020, Canopy Growth harvested 40,960 kg of product, surpassing its previous estimate of 34,000 kilograms. The Q1 harvest is the first full-scale harvest since the retrofitting of its large-scale greenhouse facilities started in calendar 2018, and with a majority of the work completed at Mirabel, Delta, and Aldergrove facilities, the Company is now shifting its focus to optimizing these facilities for yield and cost. The Company believes these efforts will contribute to both revenue growth and gross margin improvements in coming months. The recent Q1 harvest demonstrates the Company’s ability to scale production of ‘high-THC’ strains of cannabis, representing over 70% of the harvest, which positions the Company to better meet the burgeoning demand for high-THC products in retail. The Company also saw a steady increase of recreational retail sales which continues to be the primary channel for reaching new consumers.
“The Company has two primary objectives as we complete Q1 2020 and look to the remainder of the fiscal year,” said Mark Zekulin, CEO, Canopy Growth. “First, the Company remains focused on laying the foundation for dominance in an emerging global opportunity. This means investments in developing intellectual property, building brands, building international reach, and ensuring scaled production capability for current and future products. Second, we are fixated on the process of evolving from builders to operators over the remainder of this fiscal year, meaning that as our expansion program comes to a close in Canada, and as new value-add products come to market in Canada, we demonstrate a sustainable, high margin, profitable Canadian business.”
- Generated net revenue1 of $90.5 million in Q1 2020.
- Adjusted EBITDA of $(92.0M) up $5.7M versus Q4 2019 inclusive of investments in US CBD expansion activity.
- Increased dried cannabis sales in the Canadian recreational market by 94% over Q4 2019.
- Harvested 40,960 kilograms exceeding expectations in the quarter, an increase of 183% over Q4 2019.
- Increased international medical cannabis revenue by 209% versus Q1 2019.
- Filed 56 patent applications in the quarter, bringing the company’s patent portfolio to an industry-leading 111 patents and 270 patent applications.
- On track to unveil portfolio of value-add, higher-margin products in various form factors in October 2019.
- One-time, non-cash charge on extinguishment of warrant liability biggest contributor to net loss in the quarter.
More information on the financials can be found clicking here.