Earnings Update: Canopy Growth Reports Smaller Adjusted Loss In Q3, TGOD Anticipates Strong Q4

Canopy Growth Reports Smaller Adjusted Loss In Q3

Canopy Growth Corporation WEED CGC is reporting yet another quarter of record net revenue.

Net revenue spiked by 23% year-over-year, to $153 million, mainly due to the increase in Canadian recreational and International medical cannabis revenue.

The reported gross margin for the period was 16%, and adjusted gross margin, excluding restructuring charges, 26%.

Total selling, general and administrative expenses dropped by 15%, compared to the same period last year.

The company reported a net loss of $829 million.

Adjusted EBITDA was also a loss of $68 million versus a $97 million loss in the corresponding quarter of 2020.

"We are executing against our cost savings program, with several initiatives already completed and more underway to build a leaner and more agile business," the company company's CFO, Mike Lee, said Tuesday. He expects cost savings, alongside their top-line growth and continued cost discipline, "to achieve profitability during Fiscal 2022."

Over the last year, the Smith Falls, Ontario-based company has been making cuts to its workforce. After laying off roughly 500 employees in March, the company opted to dismiss "a number" of workers at Niagara-on-the-Lake, Ontario-based in September.

Green Organic Dutchman Revenue Increases 235% YoY

Cannabis company The Green Organic Dutchman Holdings Ltd. TGOD TGODF expects fourth-quarter revenue to amount to roughly $10.9 million, representing a year-over-year and sequential growth of 235% and 91%, respectively.

According to its preliminary unaudited financial report, Canadian operations and sales accounted for $8.6 million of the total gross revenue for the period.

Interim CEO Sean Bovingdon is "encouraged" by the traction Green Organic Dutchman is gaining with its Highly Dutch flower and hash. He also disclosed that in addition to expanding its distribution, TGOD also plans to promote its new flower strains as well as 2.0 product offerings.

"Our increase in revenue reflects the collective efforts of the TGOD team, resulting in improvements in the quality of our flower, which is being well received by the market," he added.

Bovingdon was named interim CEO in November, following Brian Athaide's resignation from the position.

The company also said that despite an increased risk imposed by the current market condition, it expects to achieve the Prospectus Forecast of $61.5 million net sales for the period starting Nov. 1, and ending Oct. 31.