Shares in Canadian cannabis company Canopy Growth surged on the New York Stock Exchange (NYSE) on Tuesday after it reported smaller quarterly losses than expected, driven by increased year-on-year sales and cost-cutting measures.
Net first-quarter losses ending June 30 were C$128m, down from C$194m in the same period last year. Revenues were up 22% on Q1 2019 at C$110m.
Chief Executive David Klein said in a statement: “We grew our revenue year-over-year and are seeing market share improvement, notably achieving number one market share in cannabis-infused beverages in the Canadian market.”
Chief Financial Officer Mike Lee added: “Following our previously announced restructuring actions, we have substantially reduced our expense and cash burn in this quarter in addition to reducing headcount by over 18% since the beginning of this calendar year.”
Shares on the NYSE gained 11% to US$18.47.
