Mon. Nov 11th, 2019

Constellation Brands Q2 share of Canopy losses to be $54.3 million

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Corona beer parent Constellation Brands Inc.

STZ, -1.56%

disclosed Monday that its share of Canopy Growth Corp.’s

CGC, -0.96%

WEED, -1.04%

losses will be $54.3 million on a net basis, or $38.5 million on an adjusted basis including a tax benefit, which will be recognized in its fiscal second quarter ended Aug. 31. Constellation, which made a $4 billion investment in the Canada-based cannabis company last year, said it recognizes equity earnings from its equity-method investment in Canopy on a two-month lag. For the six month ended Aug. 31, Constellation said its share of Canopy losses was $132.5 million, or $77.3 million in an adjusted basis. Shares of Constellation rose 0.6% in premarket trading and Canopy’s U.S.-listed stock was up 1.6%. Year to date, Constellation shares have run up 23.4% and Canopy’s stock has lost 7.4%, while the ETFMG Alternative Harvest ETF

MJ, -2.48%

has slipped 0.6% and the S&P 500

SPX, -2.59%

has rallied 13.6%.

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