In a change from previous earnings calls, Canopy Growth set new, broader profitability goals for the cannabis company during its fiscal 1Q20 earnings call.
The Smiths Falls, Ontario, company previously provided goals for its Canada segment, but this time it expanded the conversation to include consolidated operations.
Interim CEO Mark Zekulin acknowledged that management is “well aware that our business will in the future be increasingly judged by financial metrics, including achieving positive earnings in our consolidated corporate P&L.”
Target: Light at the End of the Tunnel
The company revealed multiple revenue and profitability targets they want to achieve over the next several quarters and 3-5 years out:
- Net revenue at CA$1 billion run rate by the end of the fourth quarter of fiscal 2020. (Current estimates for 4Q20 revenue are CA$245 million.)
- Canadian business segment delivering positive adjusted EBITDA on a quarterly basis within fiscal 2021.
- Consolidated operations to deliver positive adjusted EBITDA on a quarterly basis within fiscal 2022.
- Consolidated operations to deliver positive net income within three to five years.
Management stated on the 1Q20 earnings call that the company is evolving its focus from builder to operator over the next several quarters. Management also previewed multiple future product introductions in vape, beverages and chocolates.
Release dates for the products are scheduled 6-9 months out.
