Canadian-based medical marijuana company Canopy Growth (NYSE:CGC) saw its shares fall over 10% after reporting fourth quarter and fiscal year 2018 financial results.
Annual and fourth quarter revenue was reported at $77.9 million and $22.8 million, representing a YOY increase of 95% and 56%, respectively.
Other highlights from the result as written in the company’s press release were:
Total licensed footprint exceeding 2.4 million sq. ft.; 200,000 clones prepared and shipped from Ontario to jump start cultivation in million sq. ft. greenhouses in British Columbia ;
Inventory of approximately 15,700 kilograms of dry cannabis, 7,000 litres of cannabis oils and 360 kilograms of softgel capsules at quarter end;
Secured deep channels into Canadian recreational market; multi-year supply agreements, with commitments totaling over 25,000 kg per year, with 5 provinces and territories announced to date; secured private “brick & mortar” and online cannabis retail licenses in Manitoba , Newfoundland & Labrador and Saskatchewan ;
Annual and fourth quarter revenue of $77.9 million and $22.8 million , representing year over year increase of 95% and 56%, respectively;
Record Germany quarterly sales of $2.3 million ;
Approximately $323 million cash on hand at year end to fund domestic and global expansion.
CEO Bruce Linton remarked, “With the recent launch of our Spectrum Softgels, strong sales in Canada and Germany and the expansion of our global footprint into Africa and further into Europe and Australia, we continue to drive our global leadership position in medical cannabis forward. The efforts of Canopy Growth (NYSE:CGC) and Canopy Health Innovations to develop a range of patented, insurance coverage eligible cannabis-based medicines took a critical step forward with the recent receipt of approval to conduct its first in a planned series of clinical trials. Believing that combining Canopy Health’s growing intellectual property portfolio with our production and advanced manufacturing platform will speed time to market of disruptive medicines, we made the decision to pursue full ownership of Canopy Health Innovations.”
He also said, “For many months, provincial and territorial agencies have thoroughly evaluated our business, including our product inventory, operational capabilities, IT systems as well as our cannabis retail and education programs. Being the only company selected by all provinces and territories with announced supply and retail partners, speaks to our readiness for the adult recreational cannabis market that is expected to open in less than three months.”
“Inventories on hand today, which will be used to fill a nationwide sales channel that does not yet exist, will determine early market share. Producing sites and distribution capability in place today, not next year or the year after, will keep the channel full, build consumer affinity and maintain market share. With the largest inventory and capacity today, Canopy Growth is uniquely positioned to go beyond our current commitments to provincial agencies and cannabis retailers in order to successfully open the regulated recreational cannabis market in Canada as a producer of choice nationwide.”