Canopy Growth posts massive Q4 loss
Published on May 29, 2020 by oz. staff
Canopy Growth has posted a massive $1.33 billion fourth-quarter loss.
Canada’s biggest cannabis company released its quarterly and year-end update Friday, shocking investors with the news. Stocks were down 20% in early trading.
Canopy CEO David Klein said the company was resetting its strategic focus.
“Through the COVID-19 pandemic we have worked hard to ensure the health and well-being of our teams and customers and the continuity of our business,” said Canopy CEO David Klein.
“During this time, our team has rolled out our exciting new cannabis-infused beverages and vape products in Canada and a portfolio of CBD products in the U.S.”
The loss is particularly surprising, as it comes amidst record spending on legal cannabis products.
On the bright side for the company, Canopy (TSX: WEED) (NYSE: CGC) generated net revenue of $399 million in 2020, up 76% over 2019.
• The full details are in Canopy Growth’s news release.
It’s no secret to cannabis consumers that the company’s flower has been hit and miss.
Canopy is sharing details of its new strategic plan, which it hopes will help win more business in priority markets and categories.
“I am excited to implement our strategy reset and organization redesign over the course of fiscal 2021. We have a renewed strategic focus and a clear change agenda that is already underway,” said Klein.
“We are building what we believe is the best cannabis company in the world by putting the consumer at the heart of everything we do and are re-aligning our organization to be faster and more agile.”
Canopy is no longer striving to be the first to every market, but rather the best. It also plans to become a leading consumer insights and product development company in select priority markets that matches products and consumer preferences in the cannabis space.
Canopy says it will focus on being consumer-centric by building its consumer insights and analytics, along with leading-edge R&D and innovation.
Canopy hosted a conference call and audio webcast with David Klein, CEO and Mike Lee, CFO at 7 a.m. PST May 29.
The replay of the call is accessible until midnight Aug. 27 here.