Cannabis producer Canopy Growth Corp. WEED CGC disclosed Friday a fourth-quarter net loss of CA$1.3 billion ($946.4 million).
That's up from the loss of CA$347.5 million Canopy posted for the same quarter a year ago.
The Smiths Falls, Ontario-based company reported net revenue of CA$399 million for the quarter, up 76% year-over-year and down 13% quarter-over-quarter.
Here's a breakdown of what the earnings report revealed:
- A negative gross margin of 8% for the full year and 85% for the quarter — including one-time restructuring and separate charges — and adjusted gross margins of 26% and 42%, respectively
- Impairment and restructuring charges of CA$743 million
- 17% increase in SG&A expenses during the fourth quarter, compared to the previous period
- Adjusted EBITDA loss of CA$102 million in the fourth quarter and a loss of CA$442 million for fiscal 2020
- Gross cash flow decreased by approximately 13% sequentially, to CA$2 billion in the fourth quarter
- Recreational business-to-business sales fell by 31% sequentially
- Business-to-consumer sales decreased by 14% during the same period
- Medical cannabis sales hovered at CA$14.9 million over the past six months
"I am excited to implement our strategy reset and organization redesign over the course of fiscal 2021," CEO David Klein said in a statement. "We have a renewed strategic focus and a clear change agenda that is already underway."
Despite the global health crisis, the company expanded its product portfolio by launching new cannabis-infused beverages, vape and CBD products in both Canada and the U.S., Klein said.
The company's new approach to the business includes building a presence in select priority markets within the cannabis space and focusing on consumer insights, analytics and product development.
In March, the company inked a CA$80.5-million loan financing arrangement with TerrAscend Corp.'s TER TRSSF subsidiary oriented toward the Canadian market.
Canopy made operational changes in April. It laid off around 85 full-time employees; quit its operations in South Africa and Lesotho; closed an indoor facility in Yorkton, Saskatchewan; and canceled its farming activities in Springfield, New York.
Canopy Growth shares were down 20.25% at $17.33 at the time of publication Friday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Missed the first wave of cannabis investments? Don’t make that mistake again.
Experts believe cannabis stocks have found their floor and are now poised for unprecedented growth.
Join Benzinga PotProfits. Our in-house canna stock expert, Michael Berger, is on a mission to uncover the most promising cannabis stocks poised for growth, even in a dull market. He leaves no bud unturned to bring you the juiciest potential double-digit opportunities!
Just this year, the PotProfits portfolio has seen smoking-hot gains like:
- 47.10% with $GTBIF
- 40.23% with $TCNNF
- 21.50% with $VFF