A couple of days ago, Canopy Growth Corporation, one of the leading cannabis operators in the North American region, announced the release of its latest financial results corresponding to the first quarter of fiscal 2021, which ended on June 30, 2020.
Overall, the company shows that its decision to restructure its operations and add more market share is gaining traction, as it can be seen it the company’s net revenue. That figure came in at $83.04 million, 22% higher compared to the same quarter last year. Another aspect that has strengthened the company’s power in the market is the increasing demand for its brand-new line of cannabis-infused beverages that are taking the market by a storm.
The cannabis-infused beverage segment brought in multiple benefits for the company since the line of products was launched, with the Canadian market reporting 1.2 million cans sold. “We’re proud of our strong first-quarter performance, despite unprecedented volatility and uncertainty in the market and across the globe,” said Canopy Growth CEO David Klein. “We grew our revenue year-over-year and are seeing market share improvement, notably achieving number one market share in cannabis-infused beverages in the Canadian market. We are implementing a renewed corporate strategy with the appointment of a new leadership team, which will focus on delivering quality products to our consumers, positioning our business for continued growth. The proposed retooled Acreage announcement refocuses our entry for the evolving U.S. market, where we are seeing increased momentum.”
Klein also spoke about the process of restructuration Canopy Growth was working on in which the expense and cash burn were significantly reduced. Part of this cost reduction was due to the adjustments made when the workforce was reduced by 18% throughout this year. The total adjusted EBITDA loss of $69.45 million was significantly less than what investors and analysts predicted, which shows great signs of recovery and advancing towards profitability. “We’ve already proven we can deliver a 40%-plus gross margin and are confident that we can return to that level as we work toward higher capacity utilization across our facilities as demand for our cannabis products continues to grow,” added Klein.