trending Market Intelligence /marketintelligence/en/news-insights/trending/Ze9Ew9JZ_BpmsGHP7dmpxw2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *

* Required

In This List

Constellation Brands expects $38.5M loss in Q2 from Canopy investment

S&P Global Market Intelligence

Cannabis Hashing Out a Budding Industry

The Market Intelligence Platform


Constellation Brands expects $38.5M loss in Q2 from Canopy investment

Constellation Brands Inc. on Aug. 26 said the company's investment in Canopy Growth Corp. will result in a non-GAAP net loss of $38.5 million for the second quarter ending Aug. 31.

In 2018, Constellation Brands raised its shareholding in the Canadian medical cannabis producer to around 37% with an investment of C$5 billion.

The maker of Corona and Modelo beers updated its outlook after Canopy Growth's net loss grew 1,308% year over year to C$1.28 billion for the first quarter ended June 30. Canopy Growth Co-CEO and Chairman Bruce Linton had stepped down in July, subsequent to the release of the company's fiscal 2019 fourth-quarter results.

During an earnings call in June, Constellation Brands Executive Vice President and CFO David Eric Klein disclosed that the company recognized an $828 million decrease in the fair value of its Canopy Growth investment for the first quarter of fiscal 2020.

CEO William Newlands also said in the call that the company is "not pleased" with Canopy's fiscal 2019 year-end results.

Constellation Brands expects to report a non-GAAP net loss of $77.3 million for the six months ending Aug. 31, including benefits from income taxes.

As of Aug. 8, the New York-based alcoholic beverages maker owns an approximately 35.47% stake in Canopy Growth.