Canopy Growth (CGC) - Get Canopy Growth Corporation Report posted a narrower fourth-quarter loss Tuesday as demand for the Canada-based group's cannabis products extended over the final months of the pandemic boost and cost cuts boosted its bottom line.
Canopy Growth said its loss for the three months ending in March, the group's fiscal fourth quarter, was pegged at C$1.85 per share, down from a loss of C$3.72 per share for the same period last year. Group revenues, Canopy said, rose 45.4% to C$167.375 million ($139.1 million), topping the Street consensus forecast of C$152 million. Canopy Growth said operating expenses were down 73% from last year to $243 million.
"During Fiscal 2021, Canopy Growth transformed into a CPG-modelled organization, reinforcing a foundation for sustained growth and long-term success," said CEO David Klein. "By leveraging consumer insights and innovation to deliver best-in-class products, Canopy Growth is positioned to achieve our goal of unleashing the power of cannabis to improve lives."
"We are starting to see strong momentum across all of our key businesses and remain firmly focused on capitalizing on U.S. opportunities in Fiscal 2022," he added.
Canopy Growth shares were marked 1.4% higher at $30.68 each on the Toronto Stock Exchange Tuesday -- following Monday's 3.8% decline -- while the group's U.S.-listed shares were marked 4.44% lower on the Nasdaq to trade at $24.95 each.
"We made tremendous progress improving our supply chain and right-sizing our manufacturing footprint, bringing supply and demand into balance," said CFO Mike Lee. "Our cost savings program is on track to deliver $150-$200 million of savings within the next 18 months, and we remain committed to our path to profitability by the end of Fiscal 2022, while continuing to invest in an organization that is focused on insights, innovation and gaining momentum in the U.S. market."