Canopy Growth Corp. reported a C$1.28 billion quarterly loss late Wednesday and missed analyst estimates for revenue, sending shares down 10% in after-hours trading.
The world’s largest cannabis company by market value, Canopy GrowthCGC, -10.59% WEED, -5.76% reported fiscal first-quarter net losses of C$1.28 billion, or C$3.70 a share, compared with losses of C$91 million, or 40 cents a share, in the year-ago period. The more than $1 billion loss was due to the company extinguishing warrants related to the Constellation Brands Inc.STZ, -1.61% investment.
Canopy Growth fired co-Chief Executive Bruce Linton not long after its previous earnings report, amid reports of unhappiness at Constellation with continuing large losses. CEO Mark Zekulin has remained at the helm of the company, but has said he expects to exit once a new leader is found.
Net revenue rose to C$90.5 million from C$25.9 million in the year-ago period, excluding excise taxes. Of that revenue, Canopy said that C$50.4 million was Canadian recreational business-to-business, C$10.6 was direct to consumer and C$13.1 million was medical cannabis sales. Canopy also brought in $10.5 million in international cannabis revenue.
Analysts surveyed by FactSet had estimated fiscal first quarter adjusted losses of C$0.38 a share on revenue of C$111.9 million. Canopy did not provide any per-share adjusted-earnings information.