The largest potato company with market value, Canopy Growth Corp., reported an increase of 283% in quarterly revenue when marijuana became legal in Canada, but revenues were offset by paper losses, according to a late-night securities deposit.  Canopy s
CGC, + 0.15%
WEED, + 0.29%
Last year's results were closely monitored as investors sought additional look at cannabis sales in Canada, following that rival Aurora Cannabis Inc. revealed its results earlier this week. You have to look very close to finding them, however: The company has only released results in the Canadian securities regulator's database late Thursday, just before a 45-day deadline passed.
When asked earlier Thursday afternoon when the results were to arrive, Smiths Falls, Ontario, based company spokesperson, said Canopy opted to report results after the extended trading session was closed to minimize the amount of time and news stories between earnings release late Thursday and a conference call scheduled for 8:30 am Eastern time Friday morning.
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The pot producer reported a net income of NOK 67.6 million in the quarter compared to $ C1
Other results made the leaders' desire to explain them feel rational. For example, a mark-to-market conversion of senior convertible notes chopped $ 185.8 million from Canopy's profits, part of the impact of a turbulent pot stock market. That loss was removed from diluted earnings per share, but not basically, so a 22-cent share surplus was 38 percent in losses on the next and last line.
Canada's largest pot companies said they spent heavily on marketing that led to legalization, but that cost would temper as legalization rolled out. Canopy's sales and marketing costs were deep in the bottom line, growing to $ 44.9 million from $ 9.4 million in the same period last year. General and administrative expenses increased to $ 46.1 million from $ 11.1 million in the quarter.
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Analysts were expecting Canopy to sell 12,782 kilograms of 6,58 grams a gram and report losses of 11 cents per share on sales of $ 81.2 million, according to FactSet, but there were only a few estimates, which could make the overall estimates less reliable. The company also reported that it had almost $ C5 billion in cash, mainly the result of Constellation Brands Inc.s
investment last year.
Canopy stocks closed the extended session down 0.9%. Canopy shares have more than doubled over the past year, such as the S&P 500 index
has received 2%.
Aurora reported income Monday and said that according to data from Health Canada, it had sold more than one-fifth of the country's pot. Canopy, though, sold more: Aurora reported selling 6,999 kilograms of marijuana in the quarter. Rival Aphria Inc.