February 22, 2024

Loss of canopy growth narrows on lower costs and boom in Canadian business – February 9, 2024 at 2:27 pm

Pot maker Canopy Growth posted a narrow third-quarter loss on Friday, driven by cost cuts and revenue growth at its Canadian operations.

Cannabis companies have taken inventory reduction measures to cut costs, save money and improve their finances.

Post-pandemic, cannabis producers experienced a slowdown as consumers cut spending amid high inflation and stiff competition from illegal sellers.

Canopy Growth reported on Friday that net sales from its Canadian business rose 9%, while medical sales rose 11%.

The company's gross margin for the Canadian cannabis segment increased by 28%.

Canopy Growth last year expressed doubts about its ability to continue operating as it struggled to become profitable and sold its sports nutrition products division, Biosteel, to seek bankruptcy protection.

The company said it reduced total debt by C$69 million ($51.29 million) in the quarter.

The company's net loss narrowed to C$216.8 million in the quarter ended Dec. 31, compared with a loss of C$259.5 million a year earlier. ($1 = 1.3452 Canadian dollars) (Reporting by Tanai Thumal and Sourasis Bose in Bengaluru; Editing by Shaunak Dasgupta)

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