Canadian marijuana producer Canopy Growth Corp. reported net revenue of 136.2 million Canadian dollars ($108.4 million) for the first quarter of its 2022 fiscal year, an 8.2% decline from the CA$148.4 million reported in the fourth quarter of 2021.
However, the latest quarterly net revenue total is up 23.4% growth versus the same quarter last year.
The results come as Canopy’s CEO signaled the company would strike additional deals in the United States to position the producer to enter the American THC market if and when the federal government legalizes marijuana.
Canopy Chief Financial Officer Mike Lee characterized quarterly revenue as “softer than expected” on a Thursday earnings call.
Adjusted EBITDA, a nonstandard measure of profitability, was negative CA$63.6 million, an improvement over the previous quarter’s adjusted EBITDA loss of CA$94 million.
Canopy management has committed to achieving positive adjusted EBITDA by the end of this fiscal year.
The company’s first-quarter net income was CA$390 million, which was mostly attributable to a noncash fair-value change worth CA$601 million in Canopy’s “other income” category, according to a Friday news release.
The company’s net-income performance was up sharply from a loss of CA$128.3 million recorded in the same quarter a year earlier.
On the earnings call, Canopy CEO David Klein said he “(remains) really bullish on U.S. THC permissibility, but even without permissibility, we’re doing things today that allow us to be real significant players in the U.S. THC market post-permissibility.”
Klein added that Canopy was “not finished” with U.S.-focused transactions such as deals with Acreage Holdings and TerrAscend.
“We’re going to continue to do that sort of activity between now and the time we get to permissibility,” Klein said.
The Smiths Falls, Ontario-based company claimed to have the highest recreational cannabis market share in unspecified Canadian provinces, relying on an “internal proprietary market share tool.”
Canopy’s $136.2 million in quarterly net revenue comprised:
- CA$60 million from Canadian recreational cannabis.
- CA$13.5 million from Canadian medical cannabis.
- CA$19.4 million from international medical cannabis and hemp-derived CBD.
- CA$43.3 million from consumer products, including Storz & Bickel, This Works and BioSteel.
Canopy’s cash and short-term investments were valued at CA$2.1 billion as of June 30.
Canopy shares trade as WEED on the Toronto Stock Exchange and CGC on the Nasdaq exchange.
