Key highlights from Canopy Growth’s earnings results

Canopy Growth Corporation (TSE: WEED) has released financial results for Q1 2021 for the period ended June 30, 2021. The company reported 23% revenue growth versus the first quarter thanks to double-digit growth in consumer product and cannabis segments partially offset by international cannabis revenue decline.

Canopy reported net revenue of $136 million

Net revenue in Q1 2021 was $136 million, with net cannabis revenue being $93 million, a 17% QoQ increase. In addition, the company reported 39% YoY revenue growth for other consumer products to $43 million. As a result, net revenue was up 19% QoQ without acquired businesses’ impact.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

During the quarter, the company completed the acquisition of Supreme Cannabis and Ace Valley. So far, operational and commercial integration has been running smoothly. Cannabis reform momentum is increasing as Canopy Growth continues to enhance its presence in the US through a range of novel and CBD brands. CEO David Klein said:

“With the right strategy and strong foundation in place we are confident in our ability to deliver long-term success as Canopy’s products and brands continue to demonstrate their appeal to consumers in our core markets. While we’re encouraged by regulatory advancement in the U.S., Canopy is not waiting as we continue to scale our business on both sides of the border with an exciting product pipeline planned for the coming quarters.”

Other income boosted net earnings Q1 2021

Net earnings were up $518 million in Q1 2021 to $390 million, which was mainly driven by Other Income of around $581 million. Canopy Growth reported an EBITDA loss of $64 million, which was narrower thanks to lower operating costs and higher sales. In Q1, EBITDA was affected negatively by an impairment charge of $10.1 million related to changes in sourcing strategy for specific products.

At the end of the quarter, the company had $2.1 billion in cash and near-term investment, which was a $0.2 billion drop from Q1 2021, reflecting capital investments and EBITDA losses. The company’s CFO, Mike Lee, said:

“We’re continuing to drive cost savings and operational efficiencies across the company, and remain broadly on track to our target of $150-$200 million in fiscal 2022- fiscal 2023. We look forward to scaling our new operating model in coming months as we push forward our profitability goals in fiscal year 2022.”