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Canopy Growth earlier this year extended its time frame to
achieve profitability after nearly four years of cannabis
legalization in Canada, as cheaper black market rates and
fewer-than-expected retail stores eat into the sales of legal
recreational companies.
Canopy now expects to turn in a positive earnings before
interest, taxes, depreciation, and amortization in fiscal 2024,
excluding certain investments. Analysts, however, estimate it
will be delayed by another year.
"We expect cost savings to ramp in the second half of the year,
enabling us to execute on our path to profitability even as we
continue to invest in strategic growth initiatives including in
BioSteel and our U.S. THC ecosystem,” Chief Financial Officer
Judy Hong said in a statement.
The company posted an adjusted core loss of C$74.8 million in
the first quarter ended June 30, compared to C$63.6 million a
year earlier. Net loss attributable to Canopy Growth was C$2.08
billion or C$5.23 per share for the first quarter, compared to a
profit of C$392.4 million or C$1.02 per share, a year earlier.
($1 = 1.2891 Canadian dollars)
(Reporting by Rithika Krishna in Bengaluru; Editing by Vinay
Dwivedi)
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