Canopy Growth Corp, the world’s largest cannabis producer, said on Tuesday it expects to turn a profit in the second half of 2022 after aggressive cost-cutting and higher demand for cannabis helped narrow third-quarter losses.
Canadian cannabis producers have been under pressure from investors as profits remain elusive due to oversupply crimping sales in Canada and overseas expansion bets turning sour.
Canopy said it expects to generate cash by fiscal 2024 and become operating cash flow positive a year before that, soothing market worries on profitability and sending its shares up as much as 12%.
The company and its rivals Aphria Inc and Aurora Cannabis Inc have been cutting expenses by closing plants, scaling down cultivation and laying off employees.
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