Adam JacksonCanopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) posted a net loss of C$121.9 million in its fiscal third quarter, a 47% improvement since last year’s period, as the Canadian producer showed growth in its medical and international segments amid ongoing restructuring efforts.
The Ontario-based company reported revenue of C$74.8 million, coming in slightly above Yahoo Finance analysts’ average estimate of C$73.78 million but down 5% from C$78.5 million a year earlier. However, excluding divested businesses, revenue grew 8% driven by medical cannabis and vaporizer sales.
“Canopy Growth’s third quarter highlights that our business has the right ingredients for success,” newly-minted CEO Luc Mongeau said in a statement. He noted momentum in medical cannabis and the company’s Storz & Bickel vaporizer division.
The company’s Canadian medical cannabis revenue rose 16% year-over-year while adult-use cannabis sales dropped 10%, though the latter showed sequential improvement with a 15% increase from the previous quarter driven by new product launches and bulk sales. International markets grew 14% to C$12 million, with strong growth in Poland and Germany offsetting declines in Australia.
Its Storz & Bickel vaporizer business also saw revenue increase 19% to C$22 million on strong holiday sales.
The results come as Canopy continues aggressive cost-cutting, reducing total debt to C$442 million from C$554 million in September through early loan prepayment. The company’s adjusted EBITDA loss improved 61% to C$3.5 million versus C$9 million last year.
In December, Canopy’s U.S. division completed its acquisition of cannabis operator Acreage Holdings and recently named industry veteran Brooks Jorgensen as president.
