(Bloomberg) -- Canopy Growth Corp. shares tumbled in pre-market trading after the cannabis company reported revenue that missed estimates, while posting higher costs and a wider loss.
The Smiths Falls, Ontario-based pot producer said revenue jumped 33 percent to C$23.3 million ($17.6 million) in the fiscal second quarter ended Sept. 30, short of the average analyst estimate of C$59.1 million. Shares fell 9 percent in early trading in New York.
Canopy, the second-largest pot stock by market value, sold 2,197 kilograms at an average price of C$9.87 a gram in the quarter, up from 2,020 kilograms at C$7.99 a year earlier. That contrasted with Cronos Group Inc. and Tilray Inc., which both reported lower average selling prices on Tuesday.
Despite severe supply shortages across Canada since legalization, Canopy said it’s on track to meet its supply commitments to the provinces. The average number of kilograms shipped on a daily basis during the first 12 days of November more than doubled compared with the period from Oct. 17 to 31 and its products accounted for more than 30 percent of listings in physical store networks across the country, the company said.
“We believe based on market conditions today that we will attain significant and sustainable market share of the Canadian recreational market," Chief Executive Officer Bruce Linton said Wednesday in a statement.
Canopy’s sales and marketing expenses rose to C$39 million or 167 percent of revenue, from C$7.6 million in the prior period. The company said it expects marketing costs will be lower going forward.
Its net loss was C$330.6 million, or C$1.52 per share, compared with a loss of C$1.6 million in the prior period. The loss was due in part to an increase in the fair value of its senior convertible notes.