Canopy Growth’s Net Revenue Climbs 22.5% To $135.3 Million In Q2, Records Loss Of $96.6 Million
Canopy Growth Corp (TSX: WEED) (NYSE: CGC) this morning reported its second quarter 2021 financial results, reporting net revenues of $135.3 million along with a net loss of $96.6 million for the period ended September 30, 2020. Revenues were up significantly on a quarter over quarter basis, with growth amounting to 22.5%.
Revenue growth largely comes from Canadian recreational net revenue, which saw the overall sales figure rise from $44.2 million to $60.9 million over the three month period. Dry bud sales specifically is what drove the increase, which rose to $63.9 million on a gross basis from that of $40.1 million. Global medical revenue actually fell to $31.4 million from $34.1 million over the quarter, while other revenue climbed from $32.1 million to $43.0 million.
Cost of goods sold meanwhile came in at $109.2 million, providing the company with a gross margin of $26.0 million. This still was not enough to cover operating expenses however, which came in at $310.3 million this quarter. This was largely comprised of selling, general and administrative expenses of $147.3 million, but also included asset impairment charges of $46.4 million and expected credit losses on financial assets and related charges of $94.7 million.
Combined with other income of $221.3 million, the company managed to post a net loss of $96.6 million for the three month period.
Looking to the balance sheet, cash and cash equivalents fell significantly, dropping to $673.3 million from $975.9 million over the three month period, while short term investments were relatively flat overall, dropping to $1,048.9 million from $1,060.9 million in the prior period. Accounts receivable meanwhile grew from $72.6 million to $79.7 million, and inventory increased marginally from $389.8 million to $398.5 million. Total current assets fell to $2,291.9 million from $2,613.9 million.
Accounts payable meanwhile managed to fall to $81.1 million from $89.4 million over the course of the quarter. Other liabilities more than made up for this however, growing to $147.1 million from $124.8 million. Current liabilities overall climbed from $319.7 million to $324.5 million.
Full financial results have yet to be released as of the time of writing.
Canopy Growth Corp last traded at $23.50 on the NYSE.
Information for this briefing was found via Sedar and Refinitiv. 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.
