The revenue figure was short of Wall Street analysts’ estimates.
For the quarter ended Sept. 30 the Smith Falls, Ontario, company reported a loss of C$0.03 a share, narrowed from a loss of C$0.09 a share in the year-earlier quarter. Shares outstanding rose 5.9% to 393.3 million.
Net revenue eased to C$131.4 million (US$105.4 million) from C$135.3 million a year earlier. Excluding acquired businesses, net revenue in the quarter fell 13%.
A survey of analysts polled by FactSet produced consensus estimates of C$0.20 on revenue of C$140.4 million.
At last check the stock of Canopy Growth traded on Nasdaq was 8.4% lower at $12.15. It is off 77% since it touched a 52-week high of $56.50 on Feb. 10.
“Achieving profitability remains a top priority,” Chief Financial Officer Mike Lee said in a statement. “We are focused on increasing market share in Canada, premiumizing our product mix and delivering on our cost-savings commitment.”
Gross-profit margin for the second quarter was negative 54% compared with positive 19% in the year-earlier quarter. Adjusted gross margin in the latest period was positive 12%.
Pricing in the Canadian recreational business was pressured, and third-party shipping, distribution and warehouse costs across North America were higher, the company statement said.
Canopy Growth kept costs in line. Selling, general and administrative expense in the quarter declined 15% from a year earlier.
Looking forward, Canopy Growth “continues to expect revenue acceleration in the second half of fiscal 2022, but the magnitude and pace of improvement is expected to be more modest than previously anticipated,” the company said.