Canopy Growth Reports Another Absolutely Dismal Quarter
Canopy Growth Inc. (CGC), a constituent in the munKNEE Pure-Play Pot Stock Index, has reported another quarter (Q4) of extremely disappointing financial results for the three-month period ending March 31st, 2022.
Q4 Financial Highlights
Despite the dismal Q4 financial results Canopy management tried valiantly to put a positive spin on the company's performance in their press release by comparing the Q4 results with those of the same quarter a year ago instead of being front and center and comparing the results with those of the previous quarter. The true nature of Canopy's performance is presented below to provide investors and potential investors with an accurate understanding of the health of its business. (All figures are in Canadian dollars and compared to the previous quarter)
- Net Revenue: decreased 20.6% to $112M
- Other Revenue: decreased 20.7% to $46M
- Cannabis Revenue: decreased 20.5% to $66M
- Adj. Gross Margin: increased to 32% from 13%
- Net Loss: increased 399% to $(579)M from $(115.5)M
- Adj. EBITDA: loss increased 82% to $(122)M
- Cash on Hand: remained unchanged at $1.4B
Management Commentary
David Klein, Chief Executive Officer, said:
- “[We are] further bolstering our U.S. THC ecosystem through the addition of two high-performance brands in Wana Brands and Jetty Extracts.
- In the fiscal year ahead, we will remain focused on growing our market share in the key segments that will drive profitable growth and continuing to scale our premium brands across North America.”
Judy Hong, Interim Chief Financial Officer, stated:
- “In FY2023, we are focused on executing our path to profitability in Canada, while we continue to invest in high potential opportunities – particularly in BioSteel, and further developing our U.S. THC ecosystem, which we believe remains significantly under-appreciated by the market.”
Stock Performance
So far today, May 27th, Canopy's stock price has plummeted to a new 52-week low and is now DOWN 46.7% YTD and DOWN 91.1% from its 2021 high.
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