Canadian cannabis producer Canopy Growth (WEED) reported a third-quarter loss of $232
million despite its sales rising in the period.
The Smiths Falls, Ontario-based company said that its revenue in the July through September
quarter rose 7% to $117.9 million from this year’s second quarter. However, the company’s
sales fell 10% from a year earlier.
Analysts had expected Canopy Growth to report Q3 revenue of $114 million, according to
Refinitiv data. Canopy Growth blamed the annual revenue decline on rising competition in
Canada’s cannabis sector and softer sales from its U.S. CBD brands.
The company reported a $232 million loss for the third quarter, primarily due to fair value
changes and restructuring costs.
Canopy Growth has said that it will likely take U.S. federal legalization of cannabis for it to
become profitable.
The company, and other cannabis producers, continue to struggle in a Canadian market that
has become saturated and is grappling with a robust black market for the recreational drug.
Canopy Growth’s stock is down 62% this year and trading at $4.35 per share.
