Canopy Growth Corporation (NASDAQ: CGC) announced its financial results for March 31 December 2020, the third quarter of the 2021 financial year ends with net sales of 153 million In Q3 2021, up 23% from Q3 2020, Canopy Growth said $ 99 million of that revenue was due to a surge in Canadian recreational and international medical cannabis revenues, despite the surge in sales, the company posted a staggering net loss of $ 829 million

Canopy said this was a major loss of 720 million USD than the previous quarter, taking a loss on impairment, restructuring and other related charges of 416 million $ 382 million of those related costs resulted from the announcement dated Sept. December 2020 Canopy shocked investors at the time it announced plans to shutdown multiple locations, as well as outdoor cannabis growing in Saskatchewan, the company said these decisions were the partial result of an ongoing end-to-end review At the time, Canopy was anticipating total pre-tax costs of around $ 350 million to $ 400 million for the third and fourth quarters of fiscal 2021

“We achieved another quarter of record net sales and growth across all businesses driven by improved retail and supply chain execution,” said David Klein, CEO. “We are building and accelerating a track record in our core markets our US. Growth strategy with the momentum behind the promising cannabis reform in the USAS”

“We are working against our cost-saving program as several initiatives have been completed and more are underway to build a leaner and more agile business,” added Mike Lee, CFO, “These cost savings, as well as our revenue growth and continued cost discipline, bring Canopy firmly on the way to achieving profitability in fiscal year 2022 The company has sold its stake in Canopy Rivers and increased its stake in TerrAscend

Of the impairment and restructuring charges recognized in the third quarter, approximately 15% were cash, according to Canopy, other charges were 291 million for the quarter USD, which is due to non-cash changes in fair value primarily due to the company’s higher share price

As losses fluctuate, Canopy rests comfortably on cash and short-term investments of $ 1.5 billion as of Dec. However, this was a decrease of $ 0.39 billion from $ 1.98 billion on December 31, 2020 March 2020, reflecting EBITDA loss and capital investments Adjusted EBITDA loss was 68 million for the third quarter of 2021 USD versus a loss of 97 million USD in Q3 2020 driven by revenue growth and a decrease in operating expenses

Canopy reported that SG&A’s total costs were down 15% from Q3 2020, driven by a year-over-year decrease in & marketing, general & administration, and research and development costs, and sales & marketing costs went down fell by 15% due to lower advertising and marketing costs compared to last year’s spend on product marketing and brand awareness campaigns in support of cannabis 20 products, partly offset by higher sponsorship fees for BioSteel and higher branding spending to support the US. CBD business G&A expenses decreased 23%, mainly due to a reduction in costs due to corporate restructuring measures taken earlier in the year. R&D expenses decreased 33%, also due to lower compensation expenses As a result of the company’s reorganization measures taken earlier this year, share-based compensation expenses were down 68% from the third quarter of last year

While the pain of making these big changes has sucked the oxygen out of the room, the company has actually managed to move forward on other fronts. Canada’s Recreational Market Share rose to 157% in Q3. “Our market share went up in Alberta 60 basis points and in British Columbia by 120 basis points, while in Ontario it decreased by 80 basis points in the third quarter of 2021 compared to the second quarter of 2021.Our market share in Ontario has increased in the last four weeks to the 17th January 2021 improved 150 basis points over the third quarter of 2021, “the company said in its statement. Canopy said that its market share in the flower category has increased sequentially by 180 basis points and that it has continued to gain market share in the flower segment of increasing value. p>

Beverages hit 34% market share in the quarter, despite new beverage brands emerging, canopy beverages retained the top 3 brands and our beverage brands are moving faster than the SKU-based competition

Martha Stewart’s health and wellness CBD products are experiencing strong consumer demand The brand already sells over 94% of all CBD brands in the USAS In just 4 months since launch Canopy has secured distribution of the Martha Stewart CBD collection in 580 Vitamin Shoppe and Super Supplements retail stores across the country After the quarter ended, Canopy launched CBD pet products under the Martha Stewart CBD and SurityPro CBD brands

The company announced that due to its organizational changes and cost savings plan, it is forecasting net sales of 40% to 50% for fiscal year 2022 through fiscal year 2024 and expects positive adjusted EBITDA and positive adjusted EBITDA for the second half of fiscal year 2022 Adjusted EBITDA margin of 20% for the full year of the 2024 financial year as well as a positive operating cash flow for the full year of the 2023 financial year and a positive free cash flow for the full year of the 2024 financial year

Debra Borchardt is the CEO, Co-Founder and Editor-in-Chief of GMR.She spent several years covering the cannabis industry at Forbes, Seeking Alpha and TheStreet.Before becoming a financial journalist, Debra was Vice President at Bear Stearns, where she was licensed to Series 7 and Registered Investment Advisor Debra holds a Masters degree in Business Journalism from New York University

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Canopy Growth Corporation

World News – CA – Canopy Growth posted a net loss of $ 829 for the third quarter

Source: https://www.greenmarketreport.com/canopy-growth-records-829-net-loss-in-third-quarter/