Canopy Targets Underlying Profit Growth By End Of Fiscal YearJune 1, 2021
Canopy Growth reported financial results this morning for the fiscal quarter and year ended March 31, with its annual sales up 37% to C$547 million ($454m). Canopy says it’s expecting adjusted EBITDA to turn positive in the second half of this fiscal year, after recording an adjusted EBITDA loss of C$94 million ($78m) for its most recent quarter, and a C$340 million ($283m) loss for the year.
“During fiscal 2021, Canopy Growth transformed into a CPG-modeled organization, reinforcing a foundation for sustained growth and long-term success,” said CEO David Klein, who is among the lineup of speakers scheduled for this fall’s 45th Annual Impact Marketing Seminar. “We are starting to see strong momentum across all of our key businesses and remain firmly focused on capitalizing on U.S. opportunities in fiscal 2022.”
Canopy’s diverse product line continues to be its ace in the hole. The company captured 19% of the overall flower category in Canada during the quarter and its Tweed brand accounted for six of the top 10 SKUs. At C$67.9 million ($56.5m) in sales in the quarter, flower was also the company’s best earner. The recent acquisition of Ace Valley, a vape company, has strengthened Canopy’s position in a category that to this point has not been a main focus. Drinks still only accounted for approximately C$7 million ($5.8m) in the quarter, but Canopy holds 35% of the Canadian market, giving it a strong position as the category grows.
In the U.S., Canopy recently launched a range of Martha Stewart health and wellness CBD products, including gummies, softgels, and oils, and says the line is off to a fast start. The company also made a landmark deal in the CBD beverage segment in the U.S., aligning with distribution behemoth Southern Glazer’s Wine & Spirits to distribute its Quatreau brand.—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.