Pot producer Canopy's loss narrows on cost cuts, higher demand

[June 01, 2021]  (Reuters) - Canopy Growth Corp reported a smaller adjusted loss for the fourth quarter on Tuesday as the pot producer benefited from cost-cutting measures and a pandemic-driven jump in demand for cannabis products.

A sign featuring Canopy Growth Corporation's logo is pictured at their facility in Smiths Falls, Ontario, Canada, January 4, 2018. REUTERS/Chris Wattie/File Photo

The company, which sells a range of products from dried flowers to gummies, chocolates and drinks mixed with weed, slashed total operating expenses by 73% to C$243 million ($201.76 million) in the period.

Its revenue surged 38% to C$148.4 million as demand rose for weed from customers staying at home during lockdowns. Analysts had expected a figure of C$151.8 million, according to Refinitiv IBES estimate data.

Canopy posted an adjusted loss before interest, taxation, depreciation and amortization of C$94 million ($78.02 million), compared with C$102 million a year earlier.

The cannabis industry, among the winners of the pandemic, is now benefiting from rising expectations for federal marijuana reform in the United States as many states legalize its use.

Canopy reiterated that it expected to turn profitable on an adjusted basis in fiscal year 2022.

($1 = 1.2044 Canadian dollars)

(Reporting by Arunima Kumar in Bengaluru; Editing by Aditya Soni)

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