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May 29, 2020, 12:29 p.m. EDT

UPDATE: Canopy Growth posts loss of C$1.33 billion as it books impairment and restructuring charges

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By Ciara Linnane

Canopy Growth Corp. U.S.-listed shares /zigman2/quotes/200603886/composite CGC +8.74% /zigman2/quotes/202205609/delayed CA:WEED +8.14% tumbled 19% premarket, after the Canadian cannabis market leader posted weaker-than-expected earnings for its fiscal fourth quarter. Smiths Falls, Ontario-based Canopy said it had a net loss of C$1.33 billion ($946.4 million), or C$3.72 a share, in the quarter to March 31, wider than the loss of C$347.5 million, or C$1.10 a share, posted in the year-earlier period. The loss included C$743 million in impairment and restructuring charges, most of which are non-cash, the company said. Revenue net of excise taxes rose to C$107.9 million from C$94.1 million. The FactSet consensus was for a loss per share of 59 cents and revenue of C$128.9 million. Chief Executive David Klein said the company was resetting its strategy to be faster and more agile with fiscal 2021 expected to be a year of transition. "Canopy Growth's overall strategy is to unleash the full potential of cannabis, capture sizable market share in focus categories and markets and execute a path to profitability to build sustainable, long-term shareholder value," the company said in a statement. As a result, and given the uncertainty created by the coronavirus pandemic, Canopy is withdrawing previously offered guidance for achieving positive adjusted EBITDA and net income. The company had a gross cash balance of C$2.0 billion as of March 31. Shares have gained 3% in the year to date, while the Cannabis ETF /zigman2/quotes/213173823/composite THCX +2.29% has fallen 11% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.05% has fallen 6%.

/zigman2/quotes/200603886/composite
US : U.S.: NYSE
$ 17.42
+1.40 +8.74%
Volume: 5.33M
July 10, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.44 billion
Rev. per Employee
$115,039
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/zigman2/quotes/202205609/delayed
CA : Canada: Toronto
$ 23.66
+1.78 +8.14%
Volume: 1.54M
July 10, 2020 4:31p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$8.75 billion
Rev. per Employee
$150,142
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/zigman2/quotes/213173823/composite
US : U.S.: NYSE Arca
$ 9.84
+0.22 +2.29%
Volume: 43,440
July 10, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,185.04
+32.99 +1.05%
Volume: 2.41B
July 10, 2020 5:09p
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