Wednesday, October 8, 2025

Latest

Canopy Growth Investment Results In $1.0 Billion Impairment For Constellation Brands

Canopy Growth Corp (TSX: WEED) continues to cause problems for Constellation Brands (NYSE: STZ). The latter this morning reported its second quarter 2023 financial results, and as we had predicted, was forced to take a significant write-down on the value of its Canopy investment.

The ongoing poor performance of the cannabis company hit a crescendo in the most recent quarter, when the company was forced to record impairments of $1.73 billion in goodwill, which represents all goodwill associated with the firms cannabis operations. The result was a net loss for the quarter of $2.08 billion – which then hit Constellation hard.

Due to the method in which Constellation records its investment in Canopy, referred to as the equity method, that impairment trickled down to Constellation as well. For the three months ended August 31, 2022, Constellation was forced to recognize a $650.7 million loss on its books from Canopy, of which $460.8 million is a direct result of Canopy conducting those impairments.

However, further impairments were also required during the quarter due to the falling share price of Canopy, the uncertainty of the stock price recovering, and what Constellation refers to as the uncertainty of US federal cannabis. The result, is a $1,060.4 million impairment was taken by Constellation in the second quarter of fiscal 2023 – on top of the loss recorded for the firms quarterly performance.

The firms equity method investments as a result have now fallen below the $1.0 billion level, to that of $833.4 million.

In terms of the quarter as a whole, Constellation Brands recognized revenues of $2,864.3 million, and gross profits of $1,325.9 million. After the impairments it was forced to take as a result of its initial $4.4 billion investment in Canopy that is now worth a fraction of that figure, the company recorded a net loss of $1,140.7 million for the second quarter, reflecting a loss per share of $6.30.

Constellation Brands last traded at $235.95 on the NYSE.


Information for this briefing was found via SEC.gov, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Canopy Growth Posts Net Revenue Of $136.2 Million For Fiscal Q1 2022

Canopy Growth Corp (TSX: WEED) reported this morning its financial results for fiscal Q1 2022...

Friday, August 6, 2021, 08:52:15 AM

From Founder To Former: Severance In the Cannabis Sector

You’re only the worth the value of your severance package. Or at least, that’s what...

Thursday, January 9, 2020, 06:13:51 PM

Canopy Growth Acquires Ace Valley Brand, Details Slim

Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) this morning closed the acquisition of an Ontario-based...

Thursday, April 1, 2021, 07:25:31 AM

Canopy Growth Drops Ownership In Canopy Rivers, Increases Stake In TerrAscend, Vert Mirabel

Canopy Growth (TSX: WEED) (NASDAQ: CGC) this morning announced a plan of arrangement related to...

Monday, December 21, 2020, 09:29:47 AM

Canopy Growth Sees Revenue Decline To $297.1 Million In 2024

Canopy Growth (TSX: WEED) has seen revenue decline on a sequential basis for its fourth...

Thursday, May 30, 2024, 10:24:13 AM