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Although, it has been three years since cannabis was legalized
in Canada, marijuana companies such as Canopy have been
struggling to become profitable with fewer-than-expected retail
stores, cheaper black market rates and sluggish overseas growth.
The company said it expects to turn a profit in 2024, excluding
certain investments.
"Achieving profitability is critical and we have undertaken
additional initiatives to streamline and drive efficiencies for
our global cannabis business," Chief Financial Officer Judy Hong
said.
As recently as last month, Canopy laid off 250 employees to
yield cost-savings of C$100 million to C$150 million ($78.46
million to $117.69 million) within 12 to 18 months.
Over the past few years, the company had also closed stores,
exited some international markets and introduced new offerings
such as high-potency flower strains to cater to changing
consumer tastes.
Canopy, the world's fifth-largest cannabis grower by market
capitalization, posted adjusted core loss of C$122 million, for
the quarter ended March 31, compared with C$94 million, a year
earlier. The company was also hit by asset impairment and
restructuring costs of over C$241 million.
Net loss attributable to the company for the reported quarter
narrowed to C$574.62 million, or C$1.46 per share, from C$699.98
million, or C$1.85 per share, a year earlier.
($1 = 1.2745 Canadian dollars)
(Reporting by Ruhi Soni in Bengaluru; Editing by Shinjini
Ganguli)
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