Constellation Brands, the New York-state primarily based alcohol giant, on Thursday reported a net loss of $525.two million in its most current quarter, with most of the loss coming from its 38% stake in cannabis corporation, Canopy Development.
The red ink underscores the uncertainties mainstream providers face when partnering with a enterprise involved in the emerging cannabis business, which is facing uncertainty in the wake of the vaping well being crisis as effectively as marijuana’s illegal status beneath federal law in the United States.
Constellation, which reported net revenue of $1.15 billion for the very same period in 2018, attributed “equity losses and associated activities” of $484.four million from its stake in Canada-primarily based Canopy in its fiscal second quarter 2020, which ended Aug. 31.
In 2018, Constellation invested five billion in Canadian dollars ($three.eight billion) in Canopy.
Constellation, which controls the board at Canopy, fired Canopy’s former CEO, Bruce Linton, amid aggravation at a lack of progress on turning a profit at the Smith Falls, Ontario-primarily based cannabis corporation.
Constellation, primarily based in Victor, NY, trades on the New York Stock Exchange under STZ.
Canopy, headquartered in Smiths Falls, Ontario, trades on the New York Stock Exchange as CGC and on the Toronto Stock Exchange as WEED.
A lot more facts on Constellation’s outcomes can be located right here.
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