Canopy Growth reports wider losses, closes Tweed Farms greenhouse

It doesn’t seem as if Canopy Growth would get any respite anytime soon, after sharing the recent quarterly results. Indeed, the cannabis giant hasn’t yet achieved profitability, and recent losses have been even wider than in the previous quarter.

Last quarter, the company’s EBITDA loss amounted to CA$63.6 million. This quarter, however, Canopy’s EBITDA loss is CA$162.2 million. Net loss is reportedly CA$16.3 million.

“Achieving profitability remains a top priority. We are focused on increasing market share in Canada, premiumizing our product mix, and delivering on our cost savings commitment,” said Mike Lee, CFO of Canopy Growth. To do that, the company has said that it’s writing off CA$87 million of inventory due to excess inventory “resulting from lower sales relative to forecast,” they say. On top of that, Canopy has been said to have experienced supply issues over the past three months.

“In new industries where the potential is immense, progress is rarely a straight line. With a focused strategy, a foundation for growth, and our burgeoning U.S. ecosystem, Canopy is uniquely positioned to win as the industry matures,” said David Klein, CEO of Canopy.

To better move towards said profitability, the company has said that it’s looking to reduce expenses. That’s where the closing of one of the company’s greenhouses comes in.

Canopy Growth is indeed shutting down its Niagara-on-the-Lake-based greenhouse, laying off 30 staff, BNN Bloomberg reported. “This site optimization supports both our path to profitability and the realization of efficiencies from the acquisition of Supreme," a Canopy spokesperson said to BNN Bloomberg. "Recognizing the valuable skills of our team members at the Niagara production site, we are pleased to be offering roles for the majority to transfer their employment to an alternate Canopy facility."

The company has said that will now focus on other facilities, namely the ones in Smiths Falls, Mirable, and in Kincardine.

 


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