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7 Highlights From Canopy Growth Corp's Q1'18 Financial Results

August 14, 2017

 (Image Credit - Nick Youngson

Earlier this morning, Canopy Growth Corp. (TSX:WEED)(OTC:TWMJF)(FRA:11L1) released and filed their first quarter financial results. It was a busy quarter at Canopy given the launch of their Tweed Main Street online store and craft grow program, continued efforts to integrate the Mettrum acquisition and more. Here are seven highlights from the quarter that current and potential investors should pay attention to:  

 

  1. Revenue for the first quarter was $15.9 million CAD, up 172% versus the comparable quarter of last year. Revenues increased 8% versus the fourth quarter of 2017. Although up compared to both the previous quarter and the first quarter of last year, revenues were negatively impacted by the migration to the Tweed Main Street online store (that resulted in a temporary shutdown for the previous online stores). Additionally, less Mettrum branded products were available for sale in Q1'18, due to the continued integration of the acquisition. This added more downward pressure to revenues. 

  2. Canopy sold 1,830 kilograms and kilogram equivalents in Q1'18, an 86% increase over Q1'17. The company harvested 5,575 kg (mostly attributed to the Tweed Farms greenhouse harvest) in Q1'18, up 196% over the first quarter of 2017. 

  3. Weighted average cost per gram of cultivation to harvest and post-harvest costs before shipping and fulfilment decreased approximately 22% from the first quarter of last year to $1.28 CAD per gram in Q1'18. 

  4. Gross margin before non-cash gains or losses in the first quarter of 2018 was $9.0 million CAD or 57% of revenue. In the first quarter of 2017, Gross margin before non-cash gains or losses was $4,205 CAD or 60% of revenue. Gross margins in Q1'18 were impacted by 'one time' costs associated with resetting the Mettrum grow operations and centralizing all shipping and fulfilment activities in Smiths Falls as part of the "one store" implementation. 

  5. Net losses in Q1'18 were $4.4 million CAD, or $0.03 per basic and diluted share, compared to a net loss of $3.9 million, or $0.04 per basic and diluted share in the first quarter of last year. 

  6. As of the quarter end (June 30, 2017), the company had $115.5 million in cash and equivalents. The $13.6 million CAD increase in cash from the end of fiscal 2017 is primarily attributed to cash held by a controlled subsidiary, Canopy Rivers. 

  7. Along with the launch of Tweed Main Street, Canopy Growth Corp. launched their CraftGrow program allowing 'boutique' LPs to sell product through Canopy's new online store. The company partnered with Invictus MD's AB Laboratories, Canada's Island Garden, JWC Ltd, and PUF Ventures for the CraftGrow program in the quarter. Additionally, Canada's Island Garden products were released for sale on June 24, 2017.  

 

Conclusion

 

To learn more about Canopy Growth Corp. (TSX:WEED)(OTC:TWMJF) check out the company's stock profile in our Canadian L.P. database. To view more marijuana stocks, check out our main marijuana stock database

 

Be sure to subscribe to our Canadian L.P. newsletter, so you never miss an important update from one of Canada's 52 LPs. 

 

Also, don't forget to connect with The Daily Marijuana Observer on FacebookTwitter, StockTwits, and Instagram.

 

D/M/O

 

Disclaimer
 

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Disclaimer: Except for the historical information and data presented herein, matters discussed in articles on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future performance or achievements expressed or implied by such coverage. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. Before making specific investment decisions, readers should seek their own professional advice and that of their own professional financial adviser. Smoke Show Ventures, Inc. or its affiliates, which owns The Daily Marijuana Observer, may be compensated for its services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.dailymarijuanaobserver.com/legal-disclaimer/.