Licensed marijuana producer Canopy Growth Corp. more than doubled its third-quarter revenue compared with a year ago.
The Smiths Falls, Ont.-based company reported revenue of $21.7 million for the quarter ended Dec. 31, up more than double from $9.8 million in the last three months of 2016.
Chairman and chief executive Bruce Linton said the results were driven by a significant increase in domestic sales as well as sales in the German medical market.
Canopy says it sold 2,330 kilograms and kilogram equivalents of marijuana in the quarter at an average price of $8.30 per gram. That compared with 1,245 kilograms at $7.36 per gram a year earlier.
“It feels like the big rig is just starting to move along the track now,” Linton told analysts on a conference call Wednesday.
Shares of Canada’s biggest licensed producer were up five per cent on Wednesday morning at $28.10 in Toronto.
However, the growth came as Canopy’s profits attributable to the company fell to $1.6 million or a penny per diluted share, from nearly $3 million or two cents per diluted share a year ago.
Canopy’s earnings before interest, tax, and other items, however, was a net loss of $7.1 million, compared to a net loss of $1.4 million during the same period a year ago.
That figure removes the impact of international accounting rules for the agricultural industry which require cannabis companies to record the value of their plants as income as they grow, before the product is sold, lifting the bottom line.
Canopy’s EBITDA was impacted by investments in branding and expanding its international reach and other activities during the quarter, said Canopy’s chief financial officer Tim Saunders.
These actions are “really necessary to strengthen the company’s global leadership position, both in Canada and internationally,” Saunders told analysts.