Canopy Growth Corp Investors Shrug Off Bigger Loss as Q1 Revenue Jumps

Canopy Growth Corporation (TSX: WEED) saw its first-quarter revenue more than double to $15.8 million

SmallCapPower | August 16, 2017: Canopy Growth Corporation (TSX: WEED) Monday announced results for its first quarter ending June 30, 2017, with revenues more than doubling to $15.8 million as compared with $6.9 million in the prior-year quarter. The first quarter’s focus was on a major shift to a single platform to offer all customers access to all brands through a single online store. Launching the Tweed Main Street online store, which required moving individual Tweed, Mettrum and Bedrocan ecommerce sites offline and the migration of customers to a single new e-commerce platform, reduced sales activity over a period of ~10 business days in April, which partially impacted the revenues quarter.

For Our Complete Coverage Of Canadian Marijuana Stocks Click Here  

Win Big With Our Small Cap Picks

 

Canopy Growth sold 1,830 kilograms in the first quarter ended June 30, 2017, representing an increase of 86% over the first quarter of last year. Average sales price per gram was $7.96 for the first quarter, as compared to $7.09 last year in the same quarter and $8.03 in the fourth quarter of fiscal 2017. The slight decrease from Q4 was due to a lower proportion of oils sold in the first quarter.

Operating expenses tripled in the quarter reaching $23.9 million, as compared with $7.5 million in the year ago quarter, due to which Canopy Growth saw an overall net loss of over $4.4 million in the quarter, which was up over 12% from a year ago. Despite this, shares of Canopy Growth ended Monday’s trading session 1.6% higher at $8.96. Canopy Growth stock price has rebounded more than 28% since its early June 2017 lows.

In terms of valuation, Canopy Growth currently trades at TTM price to sales value of 37.59x, price to book value of 2.40x, and forward P/E of 111.38x.

Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.

The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. To read more of this Disclaimer please click on the button below: