Canopy Growth Posts Revenues of $107.9 Million, Net Loss of $1.3 Billion For Q4 2020

Canopy Growth Corp (TSX: WEED) (NYSE: CGC) this morning reported its fourth quarter and full fiscal year 2020 financial results this morning, posting net revenues for the quarter of $107.9 million, a decline of 13%, and a quarterly loss of $1.3 billion on the back of significant asset impairments.

Revenues were down largely in the Canadian cannabis segment for Canopy Growth, with the recreational segment having a 28% decline in revenues to $49.8 million on a gross basis, with business to business sales being the largest impact with a decline of 31% quarter over quarter for the period ended March 31, 2020. Business to consumer sales, comparatively, fell 14% over the same period. International medical cannabis actually increased 11% on a quarterly basis, to that of $20.7 million.

The significant story here however is the firms quarterly loss figure of $1.3 billion. The loss was largely driven by impairment and restructuring charges, which accounted for $843 million in the fourth quarter as the company was forced to realize a more realistic valuation for many of its acquisitions.

While the firms revenues on a net basis came out to $107.9 million for the quarter, costs of goods sold amounted to $199.7 million, while operating expenses came in at $899.2 million. Operating expenses were skewed slightly as a result of asset impairment and restructuring charges of $623.3 million for the quarter. However, selling, general and administrative expenses came out at $197.6 million, signifying that the company has a long ways to go before every hitting any semblance of profitability.

Looking towards the balance sheet, Canopy Growth posted a cash position of $1.30 billion, as compared to $1.56 billion at the end of the third quarter. Short term investments also declined, from $0.71 billion to $0.67 billion, while inventory was slashed down to $0.39 billion from $0.62 billion. Total current assets declined from $3.17 billion to $2.56 billion over the three month period.

Accounts payable fell considerably over the quarter, from $0.23 billion to $0.12 billion. This improvement however was largely offset by an increase in other accrued expenses and liabilities of $0.06 billion, as well as other liabilities which rose from $0.17 billion to $0.22 billion. The net effect was that total current liabilities rose marginally, to $0.42 billion.

Canopy Growth has yet to file full financial statements.

Canopy Growth closed yesterdays session at $21.72 on the NYSE.


Information for this briefing was found via Sedar and Canopy Growth Corp. 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

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Are Big Liquor And Tobacco Bankrolling Cannabis, Or Killing It?

Markets have been unkind to cannabis investors, and made certain fundamentals-based business bloggers, who were...

Saturday, June 6, 2020, 12:13:26 PM

Canopy Growth Places BioSteel Sports Division Into Bankruptcy Proceedings

Canopy Growth (TSX: WEED) has placed its BioSteel division into bankruptcy proceedings under the Companies...

Thursday, September 14, 2023, 09:27:23 AM

Canopy Growth Downgraded to Neutral by Bank of America

Canopy Growth Corp (TSX: WEED) (NYSE: CGC) is off to a rough start this morning...

Friday, September 27, 2019, 09:38:16 AM

Canopy Growth To Raise Just $25 Million At 19% Discount To Friday’s Close

In a further sign of its struggles, Canopy Growth Corp (TSX: WEED) is again returning...

Monday, September 18, 2023, 09:01:51 AM

Canopy Growth Sees Canaccord Cut Price Target To Just $4.50 After Terrible Q4 Results

On May 27, Canopy Growth (TSX: WEED) reported its fiscal fourth-quarter financial results for the...

Sunday, June 5, 2022, 11:18:00 AM