Canopy Growth Corporation (NYSE:CGC) just posted its second-quarter fiscal 2019 results ending on September 30th, 2018. The Canadian-based cannabis company has seen its stock rise since Canada nationally legalized adult-use recreational cannabis. However, after the company released its financial results Wednesday, it seems the major cannabis contender hasn't benefited from the legalization as one would expect.
Canopy Growth Financials
During the quarter, the cannabis company secured some capital from Constellation Brands (NYSE:STZ). The strategic investment given to Canopy Growth was valued at $5 billion.
Revenue for the quarter totaled $23.3 million, up from its $17.6 million made a year ago. However, the cannabis company is down -$25.9 million from its previous quarter. Shares of the cannabis stock slid after the company posted the results.
Canopy Growth claims that the revenue 'hiccup' was due to the shipping issues of its medical cannabis products being sent to Germany. Also, many of the company's medical cannabis patients were distracted by recreational cannabis being legalized shortly, Canopy Growth claims.
"I would attribute half of the decline to not-normal-course Germany, and a little bit of a pause with the medical people […] It is the first time in our history that I'm aware of that we actually had a slowdown, but it was more of a distraction than a pattern," Bruce Linton, Canopy Growth's co-CEO, told analysts on a conference call Wednesday.
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In addition to the shipping issues and stagnancy with medical cannabis sales, the cannabis producer's operating expenses jumped this quarter. This last quarter, Canopy Growth spent $180.6 million in operating expenses, which is six times the money it spent last year in three quarters. During the quarter, the cannabis company sold 2,197 kilograms of marijuana, at the average sale price of $9.78 per gram.
Currently, Canopy has over 84,000 active registered medical marijuana patients, which is up from its 63,000 patients a year ago.
Canopy Growth Stock Movement
According to Yahoo Finance, CGC is trading at $35.06 a share, down -$0.27 (-0.76%).
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