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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.