Canadian marijuana giant Canopy Growth on Friday reported fiscal third-quarter net revenue that soared 62% from the second quarter, jumped 49% from its third quarter in 2019 and drove up its stock by double-digit figures.
The Ontario-based company, which has an estimated 22% share of the Canadian recreational marijuana market, reported revenues of 123.8 million Canadian dollars ($93.4 million) in the 2020 quarter ending Dec. 31, compared with CA$76 million in the previous quarter and CA$83 million a year earlier.
Canopy’s stock, which trades as CGC on the New York Stock Exchange and as WEED the Toronto Exchange, was up about 17% only hours after the company released its financial report.
Canopy “delivered significant gross improvement in the third quarter driven by stronger revenues” and other factors, CEO David Klein said in a statement.
The company will continue to cut costs and “rightsize” the business, added Mike Lee, an executive vice president and chief financial officer.
“Canopy’s balance sheet separates them from the pack,” Tim Seymour, the owner and manager of Amplify Seymour Cannabis, a New York-based exchange-traded fund, told Marijuana Business Daily.
Canopy accounts for about 10.5% of the ETF’s holdings.
Seymour said Canopy is “focused on profitability” and is “well-positioned in the U.S. with its hemp/CBD activities and with the Acreage acquisition.”
Canopy agreed to acquire New York-based multistate operator last June in a deal that was valued at $3.4 billion at the time.
But the merger is contingent on marijuana being legalized at the federal level in the U.S.
– Nick Thomas and John Rebchook
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