Constellation CEO ‘not pleased’ with pot investment Canopy Growth’s recent earnings

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Constellation Brands Inc. Chief Executive William Newlands said early Friday in the company’s earnings conference call that he was not pleased with the...

Constellation Brands Inc. Chief Executive William Newlands said early Friday in the company’s earnings conference call that the company was not pleased with the recent fourth-quarter earnings of cannabis producer Canopy Growth Corp.

Constellation has made a massive bet on the world’s largest pot company by market capitalization, investing more than $4 billion in a minority stake in the business. But, Canopy Growth’s fourth quarter results disappointed investors — and evidently Constellation’s CEO — as the company’s losses mounted and the company sold less cannabis sequentially in the second quarter of recreational cannabis legalization in Canada.

While we remain happy with our investment in the cannabis space and its long-term potential, we were not pleased with Canopy’s recent reported year-end results,” Newlands said in the call. “However, we continue to aggressively support Canopy on a more focused long-term strategy to win markets and form factors that matter, while paving a clear path to profitability.”

On Friday, Constellation announced earnings before the market opened that beat consensus estimates for sales and revenue.

 

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He might want to try some product and chill out, that investment is going to take a while to pay off.

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