Canopy Growth executives say the company is advancing toward profitability.
That’s a little hard to understand as the the Smiths Falls based company booked a $1.72 billion non-cash write-down that contributed to a net loss of more than $2 billion during its most recent quarter.
CEO David Klein told analysts after the report came out, “Maybe our aspirations have changed over the last several years, but we believe that we can get ourselves, with the right focus in the right categories, to a profitable business that’s not burning cash in the Canadian market.”
As part of the plan to get to the point where they earn money, 243 Canopy workers in Canada, Europe and the U.S. lost their jobs in the most recent round of cuts back in April.
Canopy anticipates its moves will create between $100 and $150 million in savings within a 12-to-18 month range and help it reach profitability by better aligning supply with demand.
The company’s Chief Financial Officer, Judy Hong, admits the Canadian market has developed very differently than they had expected it to.
Hong named market fragmentation, the strength of the eillicit market and regulatory hurdles, including a slow move toward federal legalization in the U.S., as the company’s biggest challenges.
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