Canopy Growth Q3: Revenue and loss from operations soar, company turns net profit

SMITHS FALLS, Ont. — Canopy Growth Corp. says it generated $97.7 million of revenue in the three months ended Dec. 31, including its first sales of non-medical cannabis products, up from $21.7 million in the previous year’s fiscal third quarter.

The Ontario-based company — one of Canada’s largest cannabis producers — recorded a loss from operations for the quarter, but turned a net profit due to gains on the fair value of its assets and liabilities.

Loss from operations was $157.2 million, compared with a loss of $26 million a year earlier.

Net income attributable to shareholders, including net gains on the fair value of its assets, was $67.6 million or 22 cents per basic share, up from $1.6 million or one cent per basic share a year earlier.

Adjusted EBITDA (earnings before taxes, depreciation and amortization) was negative $75.1 million, compared with a year earlier adjusted loss of $5.68 million.

Canopy also reported that if all of its convertible debt had been converted to equity at the beginning of the quarter, it would have had a net loss of 38 cents per diluted share.

The company said Tim Saunders has decided to retire as chief financial officer later this year after assisting with the transition to a new CFO, but will remain on the board of directors as a strategic adviser.

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