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Canopy Growth sees $2B net loss as Ontario cannabis company takes large writedown

Written by on August 5, 2022

SMITHS FALLS, Ont. — Canopy Growth Corp. saw a net loss of more than $2 billion in its most recent quarter, which it attributed to a $1.72 billion writedown.

The Smiths Falls, Ont., cannabis company says the net loss in its first quarter compared to net earnings of more than $389 million at the same time last year.

The net loss for the period ended June 30 amounted to a loss of $5.23 per diluted share compared to a loss of 84 cents per share in the second quarter of 2021.

Analysts expected the company to report a net loss of US$111.6 million or 28 cents per share, according to financial data firm Refinitiv.

The impairment charge was linked to its pot operations and came as its recreational business-to-business cannabis sales fell 38 per cent since last year because of price compression and increased competition.

Net revenue for the period amounted to $110.1 million, down 19 per cent from $136.2 million in the same quarter last year.

This report by The Canadian Press was first published Aug. 5, 2022.

Companies in this story: (TSX:WEED)

The Canadian Press