Losses continue to pile up at Smiths Falls-based Canopy Growth even as the licensed cannabis producer rapidly grows its revenues from legal cannabis sales, according to the firm’s quarterly earnings released after markets closed on Wednesday.
The Ottawa-area company reported revenues of $103.4 million for the three months ended June 30, nearly four times the company’s sales from the same quarter a year earlier – before recreational cannabis became legal for sale in Canada.
Net losses, meanwhile, ballooned as the company spent heavily on R&D, increased production capacity and positioned itself for further global expansion. Canopy reported a net loss of $1.28 billion for the quarter, compared with roughly $91 million last year.
Canopy’s sizeable losses frustrated investor Constellation Brands last quarter, which reported a loss of its own in part due to the cannabis firm’s performance. Bruce Linton was subsequently ousted as co-CEO of the company.
Chief executive Mark Zekulin will discuss the company’s earnings on a call with analysts Thursday morning.