Sales Of Canopy Growth Registers 300% Surge
After pot or marijuana has been legalized in Canada, the profits of the canopy producing companies have increased by leaps and bounds. Canopy Growth is such beneficiary from the legal permit to cannabis. The revenue in the 3rd quarter increased to 282% more than what was the profit in the past financial year.
The chairman and Co- CEO of the company, Bruce Linton informed that they had forecasted the growth. For this reason higher investments were done in the production of cannabis. This helped them capture the market as soon as the law was passed. While the company is now seeing profits, due to this huge amount of investment, the company had incurred considerable loss last year. This loss was also due to higher expenses in marketing, development and research. Now the company is getting all positive returns; as checked on Friday the stock price rose to 4%. This is increment by 80% in 2019.
The company published its success results few days after Aurora Cannabis (one of the primary opponents of Canopy Growth) informed media that they have seen immense profits in the sale of pot. While this is a positive scenario for the marijuana market, the companies are now facing a new challenge after pot has been legalized. The price of the product has considerably reduced. Canopy has informed that the price of marijuana has reduced by 12% as compared with the price of the product one year back. On the other hand, there has been considerable increase in the price of medical marijuana. The price of dry cannabis and extracts has reduced by more than 20%. Recreational pot has become more affordable as the market is more competitive. Canopy Growth is confident that instead of decrease in marijuana price, it will be able to keep its market.