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Canopy Growth Falls On Q2 Results, CEO Says Cannabis Sector Challenges A 'Short-Term Headwind'

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Canopy Growth Falls On Q2 Results, CEO Says Cannabis Sector Challenges A 'Short-Term Headwind'

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) posted second-quarter net revenue of CA$76.6 million ($84.2 million) on Thursday, up from CA$23.3 million in the same quarter last year. 

The cannabis company's net loss for the quarter was CA$374.6 million, down by 71% from a net loss of CA$1.28 billion in the fiscal first quarter — and 13% higher than the net loss of CA$330.6 million in the second quarter of fiscal 2019. 

The quarterly loss per share amounted to CA$1.08. 

Canopy Growth posted consolidated gross revenue of CA$118.3 million, up 6% quarter-over-quarter. 

Gross cannabis revenue excluding portfolio restructuring costs totaled CA$94.7 million. 

The second-quarter adjusted EBITDA loss was CA$155.7 million. 

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"The last two quarters have been challenging for the Canadian cannabis sector as provinces have reduced purchases to lower inventory levels, retail store openings have fallen short of expectations and Cannabis 2.0 products are yet to come to market," CEO Mark Zekulin said in a statement. 

"However, we believe these conditions are a short-term headwind in what is a brand-new industry, and Canopy continues to be best positioned with cash-on-hand, a world-class infrastructure, and a portfolio of intellectual property to deliver sustained, long-term market leadership." 

The stock was falling by 8% to $17.02 in Thursday's premarket session. 

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