Canopy reported REC sales down slightly in Q3, compared with its sales in Q2, which ended just after legalizationose last two weeks were the first of legalization. At the same time, the company posted a net loss attributable to shareholders of $335.6M, up from $61.5M one year ago. The loss was three times greater than analysts had expected.
- CEO Bruce Linton said the loss was necessary to scale up its largest greenhouses in BC and Quebec, and to plan ahead for edibles, extracts, and topicals.
- Linton said Ontario’s slow adoption of REC retail stores and Alberta’s moratorium on new stores both affected Canopy’s bottom line, and noted “an unusual weather event and other one-time activities” cost the company. (This was the subject of some confusion on Twitter.)
- CFO Mike Lee said much of Canopy’s Q1 harvest will be processed as extracts and sold in Q2 and Q3.
- REC sales declined to $68.9M from $71.6M the previous quarter. Marketwatch
- Canopy said it will launch beverages and edibles in December, but will begin with a few markets and a smaller line of offerings to begin with.
- Analysts in the American food industry note the sector has been slow to make deals with Canadian LPs ahead of edibles/beverages legalization this fall.