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CGC - Canopy Growth News Story

$16.36 -0.0  -0.2%

Last Trade - 18/09/20

Sector
Healthcare
Size
Large Cap
Market Cap £4.70bn
Enterprise Value £4.01bn
Revenue £245.5m
Position in Universe 1010th / 6396

UPDATE 1-Pot producer Aphria posts bigger-than-expected loss

Wed 29th July, 2020 1:12pm
(Recasts, compares with estimates, adds shares, segment details
and background)
    July 29 (Reuters) - Canadian pot producer Aphria  APHA.TO 
 APHA.O  on Wednesday posted a bigger-than-expected quarterly
loss and took impairment charges on some foreign assets, as
coronavirus-related lockdowns disrupted tourism and supply
chains.
    U.S.-listed shares of the company fell about 4% in premarket
trading. 
    Lack of profitability has been a major concern for cannabis
investors as companies have largely failed to deliver on initial
promises of boundless growth in the nearly two years since
Canada legalized recreational marijuana.
    However, net revenue rose more than 18% to C$152.2 million 
($113.86 million) as the COVID-19 pandemic led customers to
stockpile on cannabis ahead of the lockdowns.
    The outbreak has also caused supply issues and delays in new
product launches as companies scale back their workforce to
essential employees only, while the absence of tourism-related
dollars has also been a big worry for cannabis companies.
    Aphria took impairment charges of C$64 million in the
quarter on the value of its assets in Jamaica, Lesotho, Colombia
and Argentina.
    The company reported a quarterly net loss of C$98.8 million,
or 39 Canadian cents per share, in the three months ended May
31, compared to a profit of C$15.8 million, or 5 Canadian cents
per share, a year ago.
    On an adjusted basis, the company's loss of 14 Canadian
cents was much wider than analysts' average expectation of 4
Canadian cents, according to Refinitiv IBES.
    U.S.-listed shares of rivals Aurora Cannabis Inc  ACB.TO 
 ACB.N , Tilray Inc  TLRY.O , Canopy Growth Corp  WEED.TO 
 CGC.N  and Hexo Corp  HEXO.TO   HEXO.N  dropped between 1% and
3% in trading before the bell.
    

($1 = 1.3361 Canadian dollars)

 (Reporting by Shariq Khan in Bengaluru; Editing by Amy Caren
Daniel)
 ((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780,
outside U.S. +91 80 6182 2681; Twitter: @shariqrtrs;))
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