Tilray and Aphria’s shares rose sharply after Tilray began selling medical cannabis in the UK and Aphria appointed a managing director in Germany. Canopy Growth reported a loss of $ 830 million, but revenues were up 41%, with the company expecting profits in the second half of 2022.
FY2021 Canopy Growth Report of the year
Canopy Growth (CGC), which has gained 163.8% over the past six months, is up 1.3% ahead of trading after the company reported financial results for its fiscal 2021 third quarter ended December 30.
Canopy Growth lost C $ 2.43 (Canadian dollars), well above analyst average expectations of C $ 0.21 loss per share.
The company’s total quarterly losses were C $ 829.3 million versus C $ 109.6 million a year earlier and were driven by asset impairment and restructuring related to staff cuts announced late last year.
In December, Canopy Growth said that due to oversupply in the Canadian market, it will shut down five of its factories and lay off more than 200 workers to cut costs.
Although Canopy has a market value of $ 16.4 billion, the highest of any cannabis producer, according to Stifel, its market share of sales of cannabis products (recreational, medical, and cannabidiol products) in Canada is 10.1%, at the time like its competitor Aphria (APHA) the highest market share at 12.2%.
At the same time, Canopy Growth’s total quarterly revenues rose 41% to C $ 152.5 million, better than analysts’ expectations for growth of 25% to C $ 116.9 million.
Total revenue from Canopy Growth sales of cannabis products was C $ 98.8 million, up 9% from last year, of which C $ 63.3 million came from sales of recreational cannabis (for recreation) and C $ 35.5% from sales of medical cannabis, of which most (C $ 21.5 million) are international sales.
Canopy Growth noted its growing market share of Canadian recreational cannabis, up 15.7%, as well as a 34% market share for cannabidiol drinks.
Canopy Growth has pledged to be profitable in the second half of 2022 and receive positive operating cash flow for the full FY2023. year and positive free cash flow for the full FY2024. year.
Tilray and Aphria are up 17% and 14%, respectively
Shares in both Tilray (TLRY) and Aphria (APHA), which are preparing for the merger, rose sharply on Monday and early Tuesday amid good news of advancement in rich European markets.
Tilray announced an agreement with London-based Grow Pharma to import and distribute its medical cannabis in the UK. The first supplies of Tilray to patients will be made in March on prescriptions from the UK National Health Service or a private clinic.
Last week, Tilray signed the first deal to sell cannabis to Germany from its plant in Portugal.
Aphria has appointed Managing Director for Germany, Denise Faltischek, who has made more than 50 acquisitions, leads Aphria’s global business strategy and oversees the medical and international business segments as well as the quality department.
To develop its business in Germany, Aphria invested in the construction of its own cannabis plant and distribution network in Neumünster.
Irwin D. Simon, Chairman and CEO of Aphria said: “In Europe, following the closure of our business combination with Tilray, we will expand our presence with five strong brands that will help us create an unrivaled European platform, including two manufacturing facilities and a robust and a flexible supply chain considering the Tilray EU-GMP facility in Portugal. Tilray has a leading medical cannabis business in Europe that will benefit our existing medical cannabis sales and distribution, and will expand CC Pharma’s medical cannabis offering with access to over 13,000 pharmacies in Germany. ”