Canopy Growth Corp. (TSX;WEED), the world’s largest cannabis producer, posted a larger than expected loss in its fiscal fourth quarter.
The loss came even though Canopy Growth generated revenue above expectations. The loss was primarily attributed to high operating and marketing costs. The company reported revenue of $94.1 million in the quarter ended March 31, up from $83 million in the fiscal third quarter. Analysts were expecting $92.2 million in revenue.
The company posted a net loss of $323.4 million, or $0.98 per share, compared with a loss of $61.5 million in the prior period. The loss was due in part to rising operating expenses, mainly from sales and marketing, increased compensation and acquisition-related costs.
Analysts expected the company to report a net loss of $63.5 million and an adjusted loss of 25 cents per share. Canopy’s sales and marketing expenses rose to $53.1 million, or 56% of revenue, from $14.7 million in the prior period.
The poor financial results sent shares of Canopy Growth down more than 5% to $41.18 in pre-market trading on the New York Stock Exchange Friday. Meanwhile, the company reported $68.9 million in revenue from Canada's recreational cannabis market, down from $71.6 million from the prior quarter.
Canopy’s fiscal fourth-quarter results come as the cannabis producer ends a fiscal year that saw it expand to several new countries and acquire and invest in dozens of new companies.
Analysts expect Canopy to post revenue of $790.8 million in fiscal 2020, up 244% from fiscal 2019, according to a poll of analysts conducted by Bloomberg News.
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