Canopy Growth is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through the Company’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.
Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) reported financial results for the third quarter of fiscal 2020. Third quarter net revenues increased 62% as gross margins reached 34%. Operating expenses fell 14% compared to the second quarter due to a USD 20 Million reduction in G&A expenses on USD 31 Million lower stock-based compensation.
“In Q3 we executed across Canada, in our international markets and in our strategic acquisitions to drive revenue growth,“ said David Klein, CEO. “We have a lot of work to do. We are eager to capitalize on the opportunity to create an unassailable position through a tight focus on the consumer and on critical markets.” “We delivered significant gross improvement in the third quarter driven by stronger revenues and higher capacity utilization. Actions taken earlier this year are expected to meaningfully reduce stock-based compensation in FY21, and we have started to implement tighter cost controls across the organization,” said Mike Lee, EVP & CFO. “We plan to take further steps to reduce our costs and right-size our business to ensure that we can generate a healthy margin profile and cash generation in the coming years.”
Recreational Canadian Cannabis B2B sales increased by 8% due too over 140 stores becoming active and increased sales of dried flower and pre-roll joints. Medical sales rose 5% over the quarter majority due to increased brand and product offerings as well as increased availability the products from CraftGrow partners were. Organic growth and seasonal sales drove Storz & Bickel vaporizer revenue to increase by 46%.