Canadian cannabis producer Canopy Growth said its business transformation is taking shape despite a net loss of 829.3 million Canadian dollars ($651 million) for the third quarter of its 2021 fiscal year.
Among other new financial targets, the Smiths Falls, Ontario-based company is now aiming for positive adjusted EBITDA, a measure of profitability, during the second half of its 2022 fiscal year.
Canopy’s adjusted EBITDA loss for the third quarter, which ended Dec. 31, was CA$68.4 million.
On an earnings call Tuesday, Canopy Chief Financial Officer Mike Lee warned that further EBITDA losses were likely in the first and second quarters of the next fiscal year.
During the call, Canopy CEO David Klein said Democratic control of the U.S. government “creates a unique window of opportunity for advancing cannabis reform through executive action and legislation.”
Klein said Canopy expects it could start selling THC marijuana products in the U.S. during the current calendar year, either through new legislation or “a combination of reform measures.”
The company’s CA$829 million quarterly net loss was caused “primarily by impairment and restructuring charges,” Canopy said in a news release, including CA$382 million in charges related to facility closures announced Dec. 9.
Meanwhile, Canopy’s third-quarter net revenue reached a record of CA$152.5 million, a 23% increase over the same quarter last year and a 12.7% increase over the previous quarter.
Net cannabis revenue was CA$98.8 million, comprising:
- CA$63.3 million in Canadian recreational cannabis net revenue.
- CA$14 million of Canadian medical cannabis net revenue.
- CA$21.5 million of international medical cannabis net revenue.
Canopy said it took a 15.7% share of the Canadian recreational marijuana market during the quarter, although it did not disclose how that figure was calculated.
Canopy said its cannabis beverage products captured 34% beverage market share during the same period, although the company did not disclose exact revenue figures for those drinks, which were included alongside other cannabis-derived products in the company’s earnings release.
Shares of Canopy Growth trade as CGC on the Nasdaq and WEED on the Toronto Stock Exchange.