Canopy Growth’s losses widen
In the third quarter, Canopy Growth (WEED) (CGC) reported an operating loss of 157.2 million Canadian dollars, which widened from an operating loss of 26 million Canadian dollars in the third quarter of 2017.
Why did the losses widen?
Expansion and ramping up the production for recreational cannabis led to the recognition of expenses during the quarter. The expenses were more than the company’s sales during the quarter. However, the costs for future cash flow shouldn’t be as concerning.
Canopy Growth managed to report an income of 0.22 Canadian dollars per share, which increased from 0.01 Canadian dollars in the third quarter of 2017. The increase was mainly due to the positive impact of non-operating income of ~235 million Canadian dollars.
Earlier this week, Aurora Cannabis (ACB) reported its earnings. The company’s increased production and related costs caused Aurora Cannabis to report a net loss despite sales growth. During the quarter, the company reported a net loss of 237 million Canadian dollars—compared to net gains of 105 million Canadian dollars in the previous quarter.
On February 15, Canopy Growth will hold its earnings call. Soon, we’ll provide our takeaways from the earnings call. For more updates on other cannabis companies (HMLSF) like Aphria (APHA) and Tilray (TLRY), visit Market Realist’s Healthcare page.