Canopy Growth reports $374.6M loss, restructures softgel and oil portfolio

Canopy Growth Corp. reported a $374.6-million loss in its latest quarter as the company restructured its portfolio of cannabis softgels and oils.

The cannabis producer says the loss amounted to $1.08 per share for the quarter ended Sept. 30 compared with a loss of $330.6 million or $1.52 per share a year ago when it had fewer shares outstanding.

Net revenue in what was the second quarter of Canopy’s financial year totalled $76.6 million.

That compared with $23.3 million in the same quarter last year before the legalization of recreational cannabis in Canada, but down from $90.5 million in its first quarter.

The company says the second-quarter results included a restructuring charge of $32.7 million for returns, return provisions, and pricing allowances primarily related to changes to its softgel and oil portfolio.

Canopy also took an $15.9-million inventory charge related to the change in strategy which includes new retail pricing, a rationalized package assortment and a focused marketing and educational plan.

CBC