Canopy Growth Corporation, the world's largest cannabis company and the largest producer of medical marijuana in Canada and the United States, reported 2018 third-quarter net revenues amounting to CA$83 million (US$62 million), a massive 283 percent jump year-on-year.
This total was also 256 percent higher than Canopy's revenue in the second quarter of fiscal 2018 when the company posted a huge net loss. For Q3, the company reported earnings of CA$74.9 million (US$56.3 million) or CA$0.22 per share (US$0.17 per share).
Analysts said the recreational pot market drove most of Canopy Growth's sales hike in Q3. The company said 71 percent of its total revenue (CA$57.7 million, or US$43.4 million) was generated by the consumer market.
Twenty percent of Canopy's total revenue came from sales of medical cannabis products. The remaining nine percent of total revenue was derived from other sources, including sales of merchandise and devices. Canopy Growth likely controls more than 50% of total recreational marijuana sales in Canada.
Thanks to a major investment from its American partner Constellation Brands, Inc. Canopy Growth commands a huge cash stockpile amounting to CA$4.9 million (US$3.7 million) as of Dec. 31, 2018. This funding sourced from cash, cash equivalents, and marketable securities place Canopy Growth in a better position than any other Canadian cannabis producer to fund operations and expansion.
In August 2018, Canopy Growth secured a massive $3.8 billion investment from Constellation Brands, the company that owns Corona Beer. The investment by Constellation Brands saw Canopy Growth's stocks surge by a massive 30 percent in August.
Constellation Brands now owns a 38 percent share in Canopy Growth compared to its previous 10 percent. A Fortune 500 company, Constellation Brands is the largest beer import company in the world in terms of sales. Its beer brands include Corona, Modelo Especial and Pacífico.
Canopy Growth is the first federally regulated, publicly traded cannabis producer in Canada and the United States. It's been called one of the world's premier exporters of marijuana and is also Canada's first cannabis exporter.
The use of marijuana for recreational purposes became legal in Canada on Oct. 17. The Canadian rivals to Canopy Growth have also benefited from Canopy's good fortune.
Earlier this week, one of Canopy Growth's competitors, Aurora Cannabis, reported it had a 20% market share and CA$21.6 million in recreational pot sales.
