Canopy Growth Corporation WEED CGC reported third-quarter fiscal 2020 net revenue of CA$123.8 million ($93.5 million), up 49% year-over-year from CA$83 million.
The company posted an adjusted EBITDA loss of CA$92 million versus an adjusted EBITDA loss of CA$74.8 million in the same quarter one year ago.
In the third quarter, the company reached a gross margin of 34%, which Canopy said was impacted by reduced period costs due to greater facility utilization.
Canopy Growth's operating expenses fell by 14% quarter-over-quarter, mainly thanks to a CA$20-million reduction in G&A costs and over CA$31 million less stock-base compensation compared to the second quarter.
During the quarter, Canopy said it had a dominant market share in retail, with a projected 22% of the Canadian adult-use market; named David Klein as CEO; and concluded the first shipments of cannabis edibles and JUJU Power 510 batteries.
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"We delivered significant gross improvement in the third quarter driven by stronger revenues and higher capacity utilization,“ Mike Lee, Canopy's executive vice president and CFO, said in a statement.
“Actions taken earlier this year are expected to meaningfully reduce stock-based compensation in FY21, and we have started to implement tighter cost controls across the organization. We plan to take further steps to reduce our costs and right-size our business to ensure that we can generate a healthy margin profile and cash generation in the coming years.”
Canopy shares were trading 20.18% higher at $23.46 at the time of publication Friday morning.
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Photo courtesy of Canopy Growth.
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