Another earnings miss for Canopy Growth Corp. (TSX:WEED)
The Smiths Falls, Ontario-based cannabis producer reported a steep year-end loss after writing off more than a half-billion dollars in impairment charges, while its fourth-quarter results fell far short of analyst expectations amid a continued focus on the U.S. market.
Canopy Growth reported $148 million in revenue for its fiscal fourth quarter, up 38% from the same period a year earlier but down about 3% from its fiscal third quarter as COVID-19 restrictions weighed on the Canadian cannabis industry. On a full-year basis, Canopy Growth reported $546.6 million in revenue, up 37% from a year earlier.
However, the company reported an adjusted earnings loss of $94 million, which is an 8% improvement from last year. It posted a net loss of $616.7 million in the fourth quarter and a year-end loss of $1.67 billion led by steep asset and inventory charges.
Analysts polled by Bloomberg Markets had expected the cannabis company to report $153 million in revenue and a $61.1 million adjusted loss for the fourth quarter.
Canopy Growth said it remains the top seller of dried flower products in Canada with a 19% market share and that it has a leading position in vape and infused beverage products according to its own internal metrics.
The company expects to report similar growth next year in its Canadian operations, including its retail division which saw same-store-sales grow by about 5% over the past year. However, some analysts expect the Canadian cannabis market to remain challenging for the foreseeable future.
