Cannabis producer Canopy Growth narrows loss in third quarter
- The company said it will turn profitable by the second half of its next fiscal year and achieve positive operating cash flow in fiscal 2023.
- Canopy's US-listed shares rose 2% in premarket trading on the Nasdaq.
Canopy Growth Corp's aggressive cost-cutting measures and increased demand for cannabis products during the pandemic-led lockdowns helped the world's largest pot producer report a smaller third-quarter adjusted loss on Tuesday.
The company said it will turn profitable by the second half of its next fiscal year and achieve positive operating cash flow in fiscal 2023.
Canopy's targets could help placate investors as profits have remained elusive due to oversupply that has crimped sales in Canada. Most producers have also been burning cash on foiled big bets in other countries.
Canopy's US-listed shares rose 2% in premarket trading on the Nasdaq.
The company posted an adjusted loss before interest, taxation, depreciation and amortization of C$68.4 million ($53.70 million) for the three months ended Dec. 31, compared with C$97 million, a year earlier.
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