Canopy Growth Corporation (NASDAQ: CGC) released its fourth quarter and fiscal year 2021 financial results this morning before the market opened, leading to a 4.2% stock price drop during premarket trading as earnings disappointed investors.
The Company announced net revenue of CAD 148.4 Million, which is an increase of 38% compared to Q4 2020. The annual net revenue was reported as CAD 546.6 Million which is an increase of 37% compared to the last fiscal year. The Q4 2021 gross margin was reported to be 7%, which is not considered a meaningful change compared to Q4 2020’s gross margin. The adjusted gross profit margin, which excludes restructuring costs of CAD 10.3 Million recorded under the cost of goods sold, was reported to be 14%. The Company is operating at a recorded net loss of CAD 616.7 Million which represents an increase of 54%. The adjusted EBITDA was reported as a loss of CAD 94 Million which is a CAD 8 Million improvement compared to the Q4 2020, due to more revenue and lower operating expenses.
David Klein, Chief Executive Officer of Canopy Growth Corporation said, “We’re on track to deliver $150 million to $200 million of cost savings across our COGS and SG&A. And we remain committed to delivering positive adjusted EBITDA by the end of our fiscal ’22.”
The Canadian cannabis giant is said to be on track to reach a positive adjusted EBITDA during the second half of FY 2022.