Canopy Sales Dip On Canadian Retail Exit
February 13, 2024Canopy Growth saw sales slip 7% to C$79 million ($59m) in its fiscal third quarter ended in December, as the company’s exit from the Canadian retail business ate into its results. Excluding the impact of the retail divestiture, consolidated net revenue grew 6% year-over-year.
Canopy’s core Canadian business-to-business sales were up 9% for the period to C$23 million ($17m), driven by growth in large formats of Tweed flower as well as the addition of Wana brand edibles to the portfolio. According to the company, it’s a top-3 supplier of cannabis flower in British Columbia and added over 900 points of distribution nationally for flower in the third quarter.
The rollout of Wana edibles, meanwhile, has helped Canopy re-establish robust distribution nationally, the company says, and returned distribution to growth in Ontario, driven by key accounts. Wana gummies now claim a top 3 and 4 market share in British Columbia and Ontario, respectively, Canopy added.
Additionally, the company is continuing to pursue its goal of gaining exposure to the U.S. market through a non-controlling interest in offshoot Canopy USA. A special shareholder meeting to approve its plan is slated for April 12.—Daniel Marsteller
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