Canopy Growth (TSX:WEED) is replacing several senior executives as the cannabis producer seeks to boost its declining sales and improve its financial results.
The company said its Chief Financial Officer (CFO) Mike Lee and Chief Product Officer Rade Kovacevic have stepped down from their positions, effective immediately. Both will remain with Canopy Growth until the end of the year on an advisory basis.
In their place, Canopy Growth said Judy Hong, the company's Vice President of Investor Relations, will be its interim CFO while Tara Rozalowsky, currently in charge of the company's beverage and edibles division, will take on the Chief Product Officer role on an interim basis.
The executive shake-up comes after the Smiths Falls, Ontario-based company reported a string of quarterly revenue declines. Most recently, Canopy Growth reported disappointing fiscal second-quarter results, where revenue fell by 3% from a year earlier to $131.4 million, its third consecutive quarterly sales decline.
The company's share of the Canadian recreational cannabis market has fallen over the past several months despite acquiring two smaller companies in the hope of taking a leadership position in the space.
According to industry data, Canopy Growth's share of the Canadian market has tumbled to about 9%, while some of its peers including Tilray (TSX: TLRY) and Hexo (NASDAQ:HEXO) have experienced similar declines as smaller cultivators gain traction.
Canopy Growth has said that it needs to earn $225 million to $250 million in quarterly revenue to become profitable, although the company has withdrawn its guidance on when its expects to generate positive earnings.
