Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) this morning released its fourth quarter 2021 financial results, with the company failing to hit consensus estimates on all accounts. The company reported net revenue for the period of $148.4 million, along with a net loss of $616.7 million, and an adjusted EBITDA of negative $94.0 million.
Revenues were down on a quarter over quarter basis, falling from $152.5 million in the third quarter to that of $148.4 million in the fourth. The company also failed to hit consensus estimates of $151.8 million in revenue. Cost of goods sold meanwhile came in at $138.6 million, resulting in gross profits of $9.8 million for the three month period, which translates to gross margins of 7% – far below consensus estimates of 26.2%.
Things failed to get any better from here, with the company reporting $243.0 million in operating expenses, of which $74.8 million was related to asset impairments and restructuring costs. However, despite those impairments, the company remained structurally unprofitable, with SG&A expenses of $148.7 million for the three month period – a figure higher than net revenues. Share based compensation meanwhile amounted to $18.5 million. The result, is an operating loss of $233.2 million.
Following additional other expenses of $367 million during the quarter related to fair value changes of $292 million and additional impairment and restructuring charges of $75 million, the company posted a net loss of $617 million for the quarter, along with an adjusted EBITDA loss of $94 million. The company however is quick to point out that the loss is “$710 million narrower versus Q4 2020,” because that evidently makes it acceptable to loss a half billion dollars in a three month period.
For the full fiscal year, the company posted net revenues of $546.6 million, at a gross margin of 12%. Net loss for the year came in at $1.67 billion, while adjusted EBITDA came in at negative $340.3 million. Free cash flow was reportedly negative $630.2 million.
Cash and short-term investments currently sit at $2.3 billion for the company, an increase of $0.3 billion following a $930 million senior secured term loan obtained by the company in the quarter.
The company claims that it is currently on track to achieve positive adjusted EBITDA during the second half of FY2022.
Canopy Growth Corp last traded at $30.25 on the TSX.
Information for this briefing was found via Sedar and Canopy Growth. 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.
