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Staff work in a marijuana grow room that can be viewed by at the new visitors centre at Canopy Growths Tweed facility in Smiths Falls, Ontario on Thursday, Aug. 23, 2018. Canopy Growth Corp. says its revenues surged in the first quarter on a record harvest of cannabis. THE CANADIAN PRESS/Sean Kilpatrick

Canopy Growth net revenues surge in first quarter on record cannabis harvest

SMITH FALLS, Ont. — Canopy Growth Corp. says its revenues surged in the first quarter on a record harvest of cannabis.

The company based in Smith Falls, Ont., says it generated $90.5 million in net revenues, up from $25.9 million a year earlier.

Record Harvest Increased the Revenues

Canopy Growth Corp. revenues were driven by a record harvest of more than 40,000 kilograms. It is the first full-scale harvest for Canopy Growth Corp. since retrofitting its large greenhouses.  The Canopy harvest was 183 per cent more product than in the fourth quarter.

Other Revenues

Most of the additional revenues (for Canopy Growth Corp.) in the quarter came from the sale of recreational marijuana that was legalized last October. Medical cannabis revenues decreased five per cent, with a 39 per cent drop in Canada offset by a large growth in international sales.

Canopy Growth loss due to Extinguishing of Warrants

Canopy lost $1.28 million during the three months ended June 30. This is almost double as compared with a loss of $91,000 in the first quarter of fiscal 2019. The increased loss is mainly due to a non-cash loss of $1.18 million on the extinguishing of warrants held by Constellation Brands Inc., which invested $5 billion last November.

The loss equalled $3.70 per share, compared with a loss of 40 cents per share in the prior year.

Canopy interim CEO Mark Zekulin states:

“Our recent harvests are proof that our focus on operational excellence is working, and we look forward to showing both our Canadian and U.S. customers what we’ve been working on behind the scenes to prepare for the next wave of products coming later this year,” stated interim CEO Mark Zekulin, who was appointed in July upon the termination of Bruce Linton as co-chief executive officer.

Companies in this story: (TSX:WEED).

The Canadian Press

Featured Image: THE CANADIAN PRESS/Sean Kilpatrick