Canadian cannabis stocks continue to underperform the broader markets.
It reported a net loss of $616.7 million or $1.85 per share which was significantly narrower than its loss of $1.3 billion, or $3.72 per share in the year-ago period.
In Q4, Canopy Growth’s recreations sales were up 39% at $61.1 million while B2B sales soared 40% to $43.3 million and B2C sales increased 37% to $17.8 million.
However, investors should note that its net loss was driven by a non-cash fair value charge of $292 million related to impairment and restructuring charges as well as $75 million related to streamlining of its Canadian operations.
Canopy Growth’s inventory impairments and asset write-offs meant its gross margins slumped to 17% in Q4, from 26% in the year-ago period.
Canopy Growth will also complete its acquisition of Supreme Cannabis, making it the third-largest cannabis company in Canada with a share of 14% in terms of sales volume.
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