Third-quarter revenue increased 282% compared to a year earlier, the company reported on Thursday. Chairman and co-director Bruce Linton attributed the promise of the company's decision to make early "meaningful" investments that helped make it a major part of the Canadian market when the law came into force.
Canopy Growth also reported a major loss from a year ago when costs increased. It spent more on marketing, research and development.
But investors did not seem to think about. Canopy Growths ( CGC ) stock rose 4% Friday, and is now up nearly 80% this year.
The company's strong performance came a few days after the rivalry Aurora Cannabis ( ACB ) also gave an increase in sales during the last quarter. Shares in the company's share are up 40% for the year.
But legal weeds in Canada have introduced some new issues that these companies need to contend with. For example, pot prices have fallen.
Canopy Growth stated in its earnings report that the average of average sales prices fell 1
2% compared to a year ago, although medical marijuana prices rose.
Aurora said earlier this week that the prices of dried cannabis and extracts each doubled more than 20%. The recreation pot is cheaper, partly because it is a much more competitive market.
However, Canopy Growth hopes that brand recognition will help it stand out. Linton said the company's healthy sales figures show that it is "catching the consumer's attention."
The company generates about one-third of sales from cannabis oils and softgel capsules. It hopes to finally get more money from newer consumer products, such as vape pens and beverages.
In addition, the company has the support of US alcoholic giant Constellation Brands ( STZ ) . The Corona owner controls nearly 40% of Canopy Growth, an over $ 6 billion stake.
Canopy Growth is also planning his first priority in the United States. It wants to market hemp products, which the country legalized as part of last year's farm package.
Last year, Canopy Growth announced it received a license from New York State – where Constellation Brands is based – to process and produce hemp. It will allow the development of products containing CBD, the non-psychoactive compound that some say, helps to reduce anxiety and stress.
The company intends to spend between $ 100 million and $ 150 million to set up a so-called Hemp Industrial Park in New York, an investment that Senator Chuck Schumer of New York has said can create hundreds of jobs.
The enthusiasm for legal cannabis in the US is growing. Several states legalize recreational or medical use of the drug. Wall Street has also noticed: Several analysts from brokerage firms have begun to cover the companies.
Other cannabis stocks are also rising lately and care that the sector may be a stock market bubble. Aphria ( APHA ) Another competitor is up 65%. And Cronos Group ( CRON ) who has a large investment from the tobacco giant Altria ( MO ) has more than doubled.