Canopy Growth Posts Narrower Adj. EBITDA Loss In Q2; Net Revenue Down 10%

(RTTNews) - Canopy Growth Corp. (WEED.TO, CGC) reported that its second quarter net loss attributable to Canopy Growth widened to C$221.8 million from a loss of C$11.1 million, prior year. Loss per share was C$0.47 compared to a loss of C$0.03. The company said this was driven primarily by non-cash fair value changes and an increase in asset impairment and restructuring costs, partially offset by improved margins.

On average, eight analysts polled by Thomson Reuters expected the company to report a loss per share of C$0.27, for the quarter. Analysts' estimates typically exclude special items.

Adjusted EBITDA loss was C$78 million, an improvement of 52% from a year ago. The company said this was due to the improvement in gross margin and reductions in G&A and R&D expenses.

Net revenue was C$118 million, down 10% from a year ago. The company said the decrease is primarily attributable to increased competition in the Canadian adult-use cannabis market, the divestiture of C³ Cannabinoid Compound Company GmbH, and softer performance from This Works, offset by revenue growth at BioSteel. Excluding the impact from the divestiture of C3, net revenue declined 1%. When adjusting for both the impact of C3 and the ongoing divestiture of Canadian retail business, revenues increased 2%. Analysts on average had estimated C$113.13 million in revenue.

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