Shares of Canopy Growth Corp (NASDAQ: CGC) are down nearly 20% on Friday after the cannabis company reported its fourth-quarter results that came in shy of Wall Street expectations.
Notable figures in Canopy Growth Q4 results
Lost C$574.6 million in Q4 versus the year-ago figure of C$700 million.
Per-share loss of C$1.46 was much narrower than last year’s C$1.85.
Revenue tanked 25% to C$126.1 million, as per the earnings press release.
Consensus was for 30 cents of per-share loss on C$129.9 million in revenue.
Reported gross margin climbed sharply from 7.0% to 142% on YoY basis.
Cash and short-term investments were down C$0.9 billion to C$1.40 billion. In the earnings press release, CEO David Klein said:
In the fiscal year ahead, we will remain focused on growing our market share in the key segments that will drive profitable growth and continuing to scale our premium brands across North America.
Canopy Growth is committed to profitability
Canopy Growth expects to turn adjusted EBITDA positive in fiscal 2024, excluding its U.S. THC businesses and investments in BioSteel drinks. As per CFO Judy Hong:
Achieving profitability is critical and we have undertaken additional initiatives to streamline and drive efficiencies for our global cannabis business. In FY23, we’re focused on executing our path to profitability in Canada.
The stock is now down 50% for the year.
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