Shares of the Canadian marijuana company fell as much as 17.57% Thursday after the company reported second-quarter fiscal 2020 earnings that showed a much wider-than-expected loss and disappointing revenue. Adjusted loss per share:$76.6 million reported versus $102.3 million
The company took a C$32.7 million restructuring hit in the second-quarter for returns, return provisions, and pricing allowances,. Canopy Growth also took a C$15.4 million inventory charge in the quarter to "align the portfolio with the new strategy." "The last two quarters have been challenging for the Canadian cannabis sector as provinces have reduced purchases to lower inventory levels, retail store openings have fallen short of expectations, and Cannabis 2.0 products are yet to come to market," said Mark Zekulin, CEO of Canopy Growth,Zekulin went on to say that the conditions are a "short-term headwind" in a new industry, where Canopy Growth is still the best positioned for growth.
He also highlighted areas of success during the quarter, saying retail sales are growing, and Canadian medical revenues are up, as are international medical sales.
No surprises there then. What news on Canopy Rivers? That was an interesting magic trick...