E Canopy Growth Q3 Results Reveal Eye-Popping Net Loss Of $829M

Canopy Growth Inc. (CGC), a constituent in the munKNEE Pure-Play Pot Stock Index, reported its financial results for the third quarter fiscal 2021 ended December 31, 2020, today with an eye-popping net loss of $829 million.

(Canopy published its Q3, 2021 financial results in comparison to the same period a year ago (Q3, 2020) but the following summary is in comparison to the previous quarter (Q2, 2021) to provide clearer insights into the on-going, and most recent, trend and health of their business.)

Q3 Financial Highlights 

(All figures are in Canadian dollars and compared to the previous quarter - see here)

  • Net Revenueincreased 12.7% to a quarterly record of $152.5M (and by 23% vs. Q3, 2020) 
    • Other Revenue: increased 24.9% to $53.7M
    • Cannabis Revenue: increased 7.0% to $98.8M
      • Business-to-Business Recreational: increased 2.1% to $43.1M
        • driven by store openings across Canada and improved market share performance
      • Business-to-Consumer Recreational: increased 8.0% to $20.2M
        • due to a full quarter of sales from ten new stores in Alberta, and same-store sales growth of 4% over Q2 2021 resulting from seasonal sales and promotional programs
      • Canadian Medical: increased 0.7% to $14.0M
        • driven primarily by a higher number of orders
      • International Medical: increased 22.9% to $21.5M
        • due to resolution of packaging issue with distributor that limited sales in Q2 2021
  • Gross Margin: declined to 16% from 19% 
  • Adj. EBITDA (Loss): improved 20.2% to $(68.4)M 
    •  driven by net revenue growth and a decline in operating expenses
  • Net Income (Loss)increased 758% to $(829.3)M from $(96.6)M 
    •  driven primarily by impairment and restructuring charges and other related charges of $416M
  • Cash on Hand: decreased 7.6% to $1.59B
    •  reflecting the EBITDA loss and capital investments
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William K. 3 weeks ago Member's comment

Was that an actual loss, or was $829m an estimate of the profit that should have been made, but instead was less than what was guessed?