The company, which sells a range of products from dried flowers to gummies, to chocolates and drinks mixed with weed, said its fourth-quarter revenue surged nearly 38% to C$148.4 million, but still fell short of analysts’ estimates of C$151.8 million, according to Refinitiv IBES
The company’s revenue growth was subdued by a fresh round of COVID-19 related lockdowns in Canada and Germany, Canopy’s CEO David Klein told Reuters in an interview.
While the company is “a little concerned” that the lockdowns, especially in Canada, might also hold back growth in the current quarter, Klein said the company is still on track to be profitable by the end of its current fiscal year.
“The way it looks, there will be sequential improvement (in adjusted EBITDA) throughout the year,” Klein said.
A host of cost-cutting moves through the last year have helped Canopy narrow its adjusted loss before interest, taxes, depreciation, and amortization to C$94 million in the fourth quarter, from C$102 million in the same period last year.
The company slashed total operating expenses by 73% in the quarter.
Canopy also said it was on track to deliver savings of C$150 million to C$200 million within the next 18 months.
Klein said the company’s cost reduction had been “mostly implemented.”
The company said its focus is now firmly on the U.S. market, where expectations are rising for federal marijuana reform after many states legalized its use.
($1 = 1.2044 Canadian dollars)