On Monday Aurora Cannabis became the first major marijuana manufacturer to report its first financial results with nearly a quarter-quarter sales in the Canadian marijuana recreational market. Aphria reported its quarterly results for 2019 in January, but Canada's legalization of recreational pot only took effect about halfway through the quarter.
Marijuana investors eagerly awaited Canopy Growth & # 39; s (NYSE: CGC) fiscal third quarterly update, which, as Auror's fiscal second quarter, ended December 31, 2018 and included around 11 weeks of recreational potential. Canopy announced its third quarter results Thursday night. And those investors who expected high growth in sales were not disappointed.
Canopy reported net sales of $ 83 million in Canadian dollars, or about $ 62 million. This reflected a steady 283% jump over last year. It was also 256% higher than Canopy's sales in the previous quarter.
As expected, the recreational potential drove most of Canopy's sales growth. The company stated that 71% of its total revenue – $ 57.7 million, or about $ 43.4 million – comes from the consumer market. Twenty percent of total revenue came from the sale of medical cannabis products, with the remaining 9% of total revenue resulting from other sources, including sales of goods and units.
Canopy's regulatory applications did not reveal what their estimated share of the Canadian Recreation marijuana market was during the quarter. But Aurora Cannabis reported earlier this week that it had a market share of 20% with supplies of about $ 21.6 million. Canopy's revenue indicates it's likely to capture an impressive market share of over 50% of Canadian recreational marijuana sales.
Bottom day bottom line has improved significantly from the large net loss in the second quarter of the fiscal year 2019. The company achieved revenue from CA $ 74.9 million (USD 56.3 million), or $ 0.22 per share (USD 0.17 per share). However, this came with a star. Canopy continued to operate at a loss, but real value changes on its financial liabilities, including the older convertible notes and guaranteeing the company held, more than outweigh its operating profit.
Thanks to a large investment from partner Constellation Brands Canopy Growth had a cash balance, including cash, cash equivalents and trading securities, totaling $ 4.9 million (US $ 3.7 million) as of 31 December. December, 2018. This puts Canopy in a better position than any other Canadian marijuana producer to fund operations and expansion work ahead.