Canopy Growth Corp (TSX: WEED) (NYSE: CGC) this morning reported its first quarter financials for the period ended June 30, 2020. The company reported net revenues of $110.4 million, while posting a net loss of $128.3 million for the quarter, a marginal increase over revenues of $107 million in the fourth quarter of fiscal year 2020.
Thr bright side from this quarters financials, is that the company managed to post a positive gross margin, even if it only came in at 6%. In dollar terms, gross margin amounted to $6.5 million. In terms of revenue segments, on a year over year basis Canopy’s revenues from the recreational market fell by 11%, from $49.5 million to $44.2 million. Comparatively, global medical revenue grew by 54% to $34.1 million, from $22.2 million. All other revenue also grew on a quarter over quarter basis, from $18.8 million to $32.1 million. Comparatively, sales were up 22% from $90.5 million year over year.
The operation itself however has yet to prove its sustainable, with Canopy recognizing $178.9 million in total operating expenses for the quarter, of which $135.4 million was classified as selling, general and administrative expenses. Asset impairments and restructuring costs came in at $12.8 million for the quarter.
The loss for the quarter however was reduced as a result of “other income” of $48.2 million along with an income tax recovery of $3.0 million, bringing the net loss for the quarter to $128.3 million, despite the massive operating expenses exhibited by the firm.
Looking to the balance sheet, the firm saw its cash and cash equivalents deplete to $975.9 million from $1,303.2 million in the previous quarter. However, this was largely offset by short-term investments climbing to $1,060.9 million from $673.3 million, with the overall boost in the firms cash position a result of the $245 million received by the company from Constellation Brands (NYSE: STZ) exercising certain warrants during the quarter. Accounts receivable declined to $72.6 million from that of $90.2 million, while inventory remained relatively flat at $389.8 million, down marginally from $391.1 million in the prior quarter. Total current assets is currently pegged at $2,613.9 million.
Accounts payable meanwhile fell from $123.4 million to that of $89.4 million, while other accrued expenses climbed to $83.0 million from $65.0 million. Other liabilities fell significantly, from $420.6 million to $319.7 million. Total current liabilities came in at $319.7 million.
Finally, the company also reported that its free cash flow for the quarter amounted to -$180.1 million, an improvement from -$379.1 million in the year ago period.
The company has yet to file full financials statements with Sedar as of the time of writing.
Canopy Growth Corp last traded at $16.63 on the NYSE.
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.
