Most of the profit plunge came from a writedown but sales were down, too
The Canadian Press · Posted: Aug 05, 2022
Canopy Growth Corp. executives argued the company is advancing toward profitability, even as it booked a $1.72 billion non-cash writedown that contributed to a net loss of more than $2 billion during its most recent quarter.
“Maybe our aspirations have changed over the last several years, but we believe that we can get ourselves, with the right focus in the right categories, to a profitable business that’s not burning cash in the Canadian market,” said CEO David Klein, on a call with analysts.
“I don’t want anybody to think that we’re not spending almost all of our waking hours on…stopping the cash burn in Canada.”
His remarks came as the Smiths Falls, Ont. company behind the Tweed, Tokyo Smoke and Doja brands said Friday that its first quarter net loss compared to net earnings of more than $389 million at the same time last year.
The impairment charge for the period ended June 30 was linked to Canopy’s pot operations and came as its recreational business-to-business cannabis sales fell 38 per cent since last year because of price compression and increased competition.
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