Canopy Growth is already an established global leader in the cannabis space and is always ready for expansion. Based on its latest financial report, released yesterday, it’s in a good position to achieve new growth. Net revenue and gross margins are up, and operating expenses are down.
Canopy Growth reported net revenue of $122.78 million for the last quarter of the fiscal year that ended on March 31 of this year. This was an increase of 38% over the same period a year earlier and was a prelude to the 37% in increased net revenue for the fiscal year. That came via double-digit growth of the company’s brands across the Canadian market, as well as in international markets. Canopy Growth also saw an increased gross margin, improving from a negative 85% in the fourth quarter of fiscal year 2020 to a positive 7% a year later.
“During Fiscal 2021, Canopy Growth transformed into a CPG-modelled organization, reinforcing a foundation for sustained growth and long-term success. By leveraging consumer insights and innovation to deliver best-in-class products, Canopy Growth is positioned to achieve our goal of unleashing the power of cannabis to improve lives,” said David Klein, CEO, Canopy Growth. “We are starting to see strong momentum across all of our key businesses and remain firmly focused on capitalizing on U.S. opportunities in Fiscal 2022.”
Operating expenses decreased during the period, as well. Canopy Growth lowered its expenses by 25% in the fourth quarter as it was able to cut costs and enhance its operations. The company made improvements to its supply chain and manufacturing footprint, which helped it find a better balance with its income and expenses. As a result, Canopy Growth expects to deliver up to $166 million in additional cost savings over the next 18 months, becoming profitable by the end of fiscal year 2022.