Cannabis producer Canopy Growth Corp. WEED CGC disclosed Friday a fourth-quarter net loss of CA$1.3 billion ($946.4 million).
That's up from the loss of CA$347.5 million Canopy posted for the same quarter a year ago.
The Smiths Falls, Ontario-based company reported net revenue of CA$399 million for the quarter, up 76% year-over-year and down 13% quarter-over-quarter.
Here's a breakdown of what the earnings report revealed:
- A negative gross margin of 8% for the full year and 85% for the quarter — including one-time restructuring and separate charges — and adjusted gross margins of 26% and 42%, respectively
- Impairment and restructuring charges of CA$743 million
- 17% increase in SG&A expenses during the fourth quarter, compared to the previous period
- Adjusted EBITDA loss of CA$102 million in the fourth quarter and a loss of CA$442 million for fiscal 2020
- Gross cash flow decreased by approximately 13% sequentially, to CA$2 billion in the fourth quarter
- Recreational business-to-business sales fell by 31% sequentially
- Business-to-consumer sales decreased by 14% during the same period
- Medical cannabis sales hovered at CA$14.9 million over the past six months
"I am excited to implement our strategy reset and organization redesign over the course of fiscal 2021," CEO David Klein said in a statement. "We have a renewed strategic focus and a clear change agenda that is already underway."
Despite the global health crisis, the company expanded its product portfolio by launching new cannabis-infused beverages, vape and CBD products in both Canada and the U.S., Klein said.
The company's new approach to the business includes building a presence in select priority markets within the cannabis space and focusing on consumer insights, analytics and product development.
In March, the company inked a CA$80.5-million loan financing arrangement with TerrAscend Corp.'s TER TRSSF subsidiary oriented toward the Canadian market.
Canopy made operational changes in April. It laid off around 85 full-time employees; quit its operations in South Africa and Lesotho; closed an indoor facility in Yorkton, Saskatchewan; and canceled its farming activities in Springfield, New York.
Canopy Growth shares were down 20.25% at $17.33 at the time of publication Friday.
Courtesy photo.
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