(Reuters) – Canopy Growth Corp, on Friday reported a larger adjusted core loss for the fourth quarter, as demand for cannabis fell from COVID-19 lockdown-induced highs, sending shares of the Canadian pot producer about 10% down.
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)
