Canopy Growth Corp (NYSE:CGC) (TSE:WEED) rallied Friday after reporting that third-quarter revenue almost quadrupled from a year earlier.
For the quarter ended December 31, the world’s largest marijuana company in terms of market cap posted net revenue of C$83 million, compared with C$21.7 million a year earlier.
Shares of the company advanced 4.8% to US$48.25 in Friday’s New York trading.
Net income climbed to C$74.9 million, or C$0.22 per share, from C$11 million, or C$0.01 per share a year earlier. On a diluted basis, the company reported a loss of C$0.38 per share.
“Our successful first full quarter with recreational sales in Canada reinforces our long-held strategy of making meaningful investments early in order to secure market share,” Chairman and Co-CEO Bruce Linton said in a statement.
Canada legalized the recreational use of marijuana in October.
Constellation Brands investment
A highlight of the third quarter was the closing of a C$5 billion investment in Canopy Growth from the liquor giant Constellation Brands Inc (NYSE:STZ). In addition, Canopy Growth expanded into the UK and Peru and announced plans to set up in New York State, marking its first foray into the US hemp market.
Canopy Growth said its intellectual property portfolio grew to 32 issued patents and more than 140 patent applications, ranging from technology to genetics to clinical formulations.
Cannabis shipments for Canopy Growth totaled 10,102 kilograms and kilogram equivalents, the company reported.
–This story was updated to give the latest stock price and details from the earnings report–
Contact Dennis Fitzgerald at [email protected]