Here Is What You Need To Know From Canopy Growth Corps Earnings Report

Here Is What You Need To Know From Canopy Growth Corps Earnings Report

Canopy Growth Corporation (WEED.TO) (CGC) surged higher after releasing second quarter financial results that showed strong growth on a number of important metrics.

During the quarter, Canopy Growth recorded a $96.6 million net loss on $135.3 million of revenue. The increase in revenue is related a rise in Canadian recreational revenue, continued strength in Storz & Bickel (S&B) vaporizer sales and ThisWorks, as well as a strong contribution from BioSteel.

From creating cannabis derivative products to opening new retail locations, Canopy Growth has been nothing short of an execution story and has been capitalizing on the opportunity in Canada.

In regard to the international side of the business, Canopy Growth is working to cut costs and ramp revenues on a going forward basis and we expect this to be an important focus of the business.

As of September 30th, Canopy Growth reported to have $1.7+ billion of cash and short-term investments. This makes the company the strongest capitalized in the cannabis sector and are favorable on this aspect of the story. With this cash, Canopy Growth has staying power and has the ability to survive the current market environment.

Going forward, the market will be highly focused on how Canopy Growth enhances its leverage to the US opportunity. Through a strategic investment agreement with Acreage Holdings, Inc., the company is highly levered to the US market and expect this vertical to come under heavy focus under a Biden administration.

Through the acquisition of BioSteel, Canopy Growth has entered into distribution agreements with leading beverage distribution companies. These distribution agreements will bring BioSteel’s ready-to-drink, electrolyte-packed sports hydration beverages to consumers through a direct-store-delivery (DSD) network by early 2021. BioSteel is currently in discussion with a number of large national accounts and we will monitor how the product line is able to gain traction.

During the last week, Canopy Growth has surged higher with the rest of the cannabis sector and this is a trend that we will be following. Over the long-term, we believe that Canopy Growth is well positioned to take market share in the regions that it enters and find this to be of importance.

If you are interested in learning more about Canopy Growth, please send an email to with the subject “Canopy Growth” to be added to our distribution list.


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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Mon, 09 Nov 2020 16:39:00 +0000