Canopy Growth (CGC) - Get Report on Tuesday posted fiscal third-quarter revenue that beat analysts’ forecasts amid a recovery in demand for pot and pot-infused drink and vape products, even as it generated a wider per-share loss.
However, ongoing cost savings as well as top-line growth and continued cost discipline, “…puts Canopy firmly on a path to achieve profitability during fiscal 2022, with further improvement anticipated beyond,” CFO Mike Lee said in the statement.
Canopy Growth reported a fiscal third-quarter net loss of C$829 million (US$651.1 million), or C$2.43 a share, vs. a loss of C$109.6 million, or C$0.26 a share in the same period a year ago. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), the company lost C$68 million vs. C$97 million a year ago.
That was offset by record quarterly sales, which rose 23% to C$153 million, driven by an increase in Canadian recreational and international medical cannabis sales as well as stronger sales of vaporizers, and health and wellness products, the company said.
Sales of Martha Stewart-branded CBD health and wellness products continue to drive U.S. sales. Canopy Growth has secured distribution of Martha Stewart CBD collection in 580+ Vitamin Shoppe and Super Supplements retail locations nationwide.
Canopy Growth expects continued growth from its recently launched line of CBD pet products under the Martha Stewart CBD and SurityPro CBD brands.