Canopy Growth reports $374.6M Q2 loss, restructures softgel and oil portfolio

SMITH FALLS, Ont. — Canopy Growth Corp. reported a $374.6-million loss in its latest quarter as the company restructured its portfolio of cannabis softgels and oils.

The cannabis producer says the loss amounted to $1.08 per share for the quarter ended Sept. 30 compared with a loss of $330.6 million or $1.52 per share a year ago when it had fewer shares outstanding.

Net revenue in what was the second quarter of Canopy’s financial year totalled $76.6 million.

That compared with $23.3 million in the same quarter last year before the legalization of recreational cannabis in Canada, but down from $90.5 million in its first quarter.

The company says the second-quarter results included a restructuring charge of $32.7 million for returns, return provisions, and pricing allowances primarily related to changes to its softgel and oil portfolio.

Canopy also took an $15.9-million inventory charge related to the change in strategy which includes new retail pricing, a rationalized package assortment and a focused marketing and educational plan.

“The last two quarters have been challenging for the Canadian cannabis sector as provinces have reduced purchases to lower inventory levels, retail store openings have fallen short of expectations, and Cannabis 2.0 products are yet to come to market,” Canopy chief executive Mark Zekulin said in a statement.

“However, we believe these conditions are a short-term headwind in what is a brand-new industry, and Canopy continues to be best positioned with cash-on-hand, a world-class infrastructure, and a portfolio of intellectual property to deliver sustained, long-term market leadership.”

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Shrek the Musical is coming to a Red Deer stage starting on March 6

Cornerstone Youth Theatre brings tale of the grouchy green ogre to life

Maskwacis RCMP investigating after discovery of human remains

Maskwacis RCMP are investigating following the discovery of human remains near Highway… Continue reading

Man reported missing

Anyone with information can contact Red Deer RCMP

Budget day: Alberta government planning to balance books, boost employment

EDMONTON — It’s budget day in Alberta. And while the United Conservative… Continue reading

VIDEO: Grumpy sea lion resists help back to water in Washington state

Crews were able to coax her into a crate to carry her back to water

Your community calendar

Feb. 19 A Liberation of Holland event is being held at the… Continue reading

Federal government in good financial shape, provinces not so much: PBO

OTTAWA — The federal Liberals could add billions of dollars in spending… Continue reading

Ottawa’s LRT line leaves thousands out in the cold during heavy snowstorm

OTTAWA — Many transit riders in Ottawa were left out in the… Continue reading

All eyes on Wet’suwet’en chiefs’ meeting with federal, provincial ministers

SMITHERS, B.C. — The hereditary chiefs of the Wet’suwet’en First Nation prepared… Continue reading

Scheer appears to backtrack on commitment not to allow debate on abortion

OTTAWA — Conservative Leader Andrew Scheer appears to be backtracking on a… Continue reading

Beyak suspended again from Senate despite apology for posting offensive letters

OTTAWA — The Senate has voted to suspend Sen. Lynn Beyak a… Continue reading

Canadian veterinarians struggling with mental health issues, new study suggests

Canadian veterinarians are at greater risk of struggling with mental health-related issues… Continue reading

MPs to examine privacy implications of facial-recognition technology

OTTAWA — The controversial use of facial-recognition tools will soon be scrutinized… Continue reading

Most Read