Pot producer Canopy Growth posts dismal results, shares tumble 13%

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Pot producer Canopy Growth Corp on Friday reported a bigger loss for the fourth quarter, hit by non-cash charges of C$743 million related to its recent restructuring actions and impairment of some assets.

The company’s U.S.-listed shares fell over 13% in premarket trading and dragged down other stocks in the industry between 2% and 5%.

Medical cannabis was the only bright spot, while Canopy’s revenue from recreational markets at home in Canada and internationally slumped in double-digit percentages.

The COVID-19 pandemic, which has upended financial markets, was expected to give cannabis companies a boost as customers were seen stockpiling pot brownies and other products to cope with lockdowns.

However, Canopy struggled as it had to temporarily shutter most of its retail stores in mid-March and it undertook a massive restructuring program that included divestitures and layoffs in its efforts to find a path to profitability.

Ontario-based Canopy Growth’s net loss attributable to the company widened to C$1.30 billion ($946.21 million), or C$3.72 per share, in the quarter ended March 31, from C$379.5 million, or C$1.10 per share, a year ago.

($1 = 1.3739 Canadian dollars)

This article was originally published on finance.yahoo.com/finance/.

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Pakistan: At least 50 killed, dozens injured in Mastung blaston September 29, 2023 at 11:26 am

The blast happened near a mosque as people gathered to celebrate the birth of Prophet Muhammad.Image source, EPABy Kelly Ng & Usman Zahidin Singapore...

Solar eclipse: Moon to block up to a quarter of the Sunon October 25, 2022 at 9:24 am

The Moon will pass between the Sun and the Earth, in the UK's only solar eclipse of the year.Image source, PA MediaThe UK's only...

The African tech firm hoping to power space missionson October 25, 2021 at 11:53 pm

Hypernova hopes that its thruster technology will be adopted on thousands of future small satellites.

England 23-29 Scotland: Borthwick era starts with painful defeat but signs better days will comeon February 4, 2023 at 11:42 pm

England start the Steve Borthwick era with an agonising home defeat but there are signs that better days will come.England start the Steve Borthwick...

Travis Kelce scores four touchdowns in Kansas City Chiefs winon October 11, 2022 at 11:10 am

Travis Kelce becomes the first player to catch four touchdown passes in 'Monday Night Football' history as the Kansas City Chiefs come from 17-0...
Home of Science
Follow me