Canopy growth- bleeding away

chex1111

Well-Known Member
SMITH FALLS, Ont. — Canopy Growth Corp. reported a net loss of nearly $1.3 billion as higher expenses offset revenue growth in the first quarter.

Canopy reported Wednesday it lost $1.28 billion during the three months ended June 30, its fiscal first quarter of 2020, compared with a loss of $91 million in the first quarter of fiscal 2019.

The loss equalled $3.70 per share, compared with a loss of 40 cents per share in the prior year. The surge in revenue was offset by a 215 per cent increase in operating expenses to $229.2 million.

The company based in Smith Falls, Ont., said the increased loss is mainly due to a non-cash loss of $1.18 million on the extinguishment of warrants held by alcohol giant Constellation Brands Inc., which invested $5 billion last November.

It also saw a significant decrease in quarter-over-quarter gross margins, or the spread between sale price and costs, as the company has been focused on investing in rapid expansion.

Gross margin before fair value impacts in cost of sales in the quarter was $13.2 million, or 15 per cent of net revenue. In the same quarter of 2019, that metric amounted to $11.1 million, or 43 per cent of net revenue.

The company said the difference was mainly due to the impact of $16.2 million in operating costs relating to facilities not yet producing cannabis or had under-utilized capacity. It also cited a shift in the product mix away from higher-margin products as inventories evened out.

Both Canopy's loss and revenue were worse than analysts had expected.

Analysts had predicted the company would book a loss of 70 cents per share on $107.1 in revenue, according to financial data firm Refinitiv.

The company generated $90.5 million in net revenues, up from $25.9 million a year earlier, before recreational marijuana was legal in Canada.

Most of the additional revenues in the quarter came from the sale of recreational marijuana that was legalized last October. Medical cannabis revenues decreased five per cent, with a 39 per cent drop in Canada offset by a large growth in international sales.

The revenue increase was driven by a record harvest of more than 40,000 kilograms — the first full-scale harvest since retrofitting its large greenhouses — that amounted to 183 per cent more product than in the fourth quarter.

"Our recent harvests are proof that our focus on operational excellence is working, and we look forward to showing both our Canadian and U.S. customers what we've been working on behind the scenes to prepare for the next wave of products coming later this year,” stated interim CEO Mark Zekulin, who was appointed in July upon the termination of Bruce Linton as co-chief executive officer.

Linton was abruptly ousted from both the top job and the board of the cannabis company he grew into a dominant global player after Canopy reported a wider-than-expected fourth-quarter net loss, despite a jump in net revenue that beat market estimates.

Linton had been the public face of the company he co-founded in 2013 in a former chocolate factory in Smiths Falls, Ont., which had approximately 3,200 employees as of March 31. It is now the biggest pot company in the world by market value, at more than $18 billion.



Companies in this story: (TSX:WEED)." style="margin-bottom: 1em; caret-color: rgb(38, 40, 42); color: rgb(38, 40, 42); font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 15px;">
Companies in this story: (TSX:WEED).



The Canadian Press

Note to readers: This is a corrected story. A previous version said Canopy lost $1.3 million in the quarter.
 

chex1111

Well-Known Member
Tilray failing!

Speaking on a conference call with analysts after the Nanaimo, B.C.-based company, which keeps its books in U.S. dollars, posted a US$35.1 million net loss in its fiscal second quarter, Brendan Kennedy said now is not the time to pump the breaks on spending.

“You only see an opportunity like this once in your lifetime,” he said. “Globally, if now is not the time to invest I don't know when is.”


Mark Castaneda, Tilray’s chief financial officer, echoed Kennedy, stressing the importance of continued investment in the U.S. and foreign markets.

“If the world were to stop and there is no new countries to invest in, we do believe that we'd be positive EBITDA by the end of next year,” he said on the call. “I think as you look at the levels that we're at this quarter, we'll probably be something similar for next quarter, and then start to see some improvement in Q4, and then some improvements going forward.”

Tilray, which keeps its books in U.S. dollars, has not reported a profit in its first year as a public company.

Adjusted EBITDA was negative $17.9 million in the second quarter, compared to a loss of $4.7 million a year ago. Adjusting for one-time charges, the second-quarter loss was $31.2 million or $0.32 per share, nearly triple the losses in the same quarter last year.

Analysts polled by Bloomberg called for revenue of $40.35 million, an EBITDA loss of $14.4 million, and an earnings-per-share loss of $0.26.

NASDAQ-listed shares slipped over eight per cent in aftermarket trading. The stock closed 8.38 per cent higher at $46.02 in Tuesday’s session.

Tilray reported that revenue increased 371.1 per cent year-over-year to $45.9 million after the closing bell on Tuesday
 

chex1111

Well-Known Member
Main article: Canadian LP Oligopoly= Matrix scheme

Matrix schemes use the same fraudulent, unsustainable system as a pyramid; here, the participants pay to join a waiting list for a desirable product,($appreciating stock) which only a fraction of them can ever receive (preferred share, waaaay overpaid salary, golden parachute for incompetence). Since matrix schemes follow the same laws of geometric progression as pyramids, they are subsequently as doomed to collapse. Such schemes operate as a queue, where the person at head (ex. dumbfucks, like Bruce Linton) of the queue receives an item such as a television, scratch and sniff sticker, giant dildo, (your investment money) etc. when a certain number of new people join the end of the queue (Suckers-with weed envy). For example, ten joiners (suckers with weed envy) may be required for the person at the front to receive their item and leave the queue. Each joiner is required to buy an expensive but potentially worthless item, such as an e-book, or stock in a Canadian LP for their position in the queue. The scheme organizer profits because the income from joiners (suckers with weed envy) far exceeds the benefit of sending out the weed in the mail that no self respecting human would ever buy. Organizers (dumbfucks like Brendan Kennedy) can further profit by starting a scheme with a queue with shill (constellation brands) names that must be cleared out before genuine people get to the front. The scheme collapses when no more sheeple are willing to join the queue. Schemes may not reveal (value of inventory being questioned by BMO), or may attempt to exaggerate (a pound of schwagg is worth $5000), a prospective joiner's queue position, a condition that essentially means the scheme is a lottery, where you bet your ass and lose. Some countries have ruled that matrix schemes are illegal on that basis.
But, not Canada, the stock market is just too fuckin' corrupt.
 
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CalyxCrusher

Well-Known Member
Canopy reported Wednesday it lost $1.28 billion during the three months ended June 30, its fiscal first quarter of 2020, compared with a loss of $91 million in the first quarter of fiscal 2019.
Hahaha I said it from the beginning, throwing money at it doesn't make it work. It raises your overhead. That's what happens when you have more money than brains and common fucking sense, you think you can reinvent the wheel and make it better.

That's more than an exponential growth in loses. Too bad they still can't turn a fucking profit yet. Maybe more money would help..........BAHAHAHAHAHAHAH

Can't buy your seat at the table when it comes to this culture.
 

gb123

Well-Known Member
Canopy Growth loses Canadian market share, expects profit in 3 to 5 years

The Smiths Falls, Ont.-based company expects it will take three to five years to report a profit as it continues to invest in research, products and global expansion.

Toronto-listed shares tumbled 14.09 per cent to $36.57 at 2:02 p.m. ET. In New York, shares fell 14.86 per cent to $27.19.

The pot giant said it lost Canadian recreational market share in the last eight months as rivals ramped up supply, biting into the lead Canopy Growth has held onto since recreational legalization on Oct. 17, 2018.

Speaking on a conference call with analysts, chief executive officer Mark Zekulin said Canopy Growth still commands between one-third and one-fourth of sales in that market segment, but the current figure is now at the lower end of that range.


“We do still depend on the Canadian market,” Zekulin said on the call Thursday morning, expressing optimism that Ontario and Quebec will bring more retail locations online in the near term to help lure new customers.

Canopy Growth took a $8 million writedown for potential reimbursements to its wholesale customers for unsold product. The company said higher margin cannabis oil and soft gel capsules did not sell as well as expected compared to high-THC dried flower.

“In Q4, we had about a 50/50 mix between bud and soft gels. Whereas in Q1, our mix was heavily weighted towards bud and less weighted on oils and soft gels. Oils and soft gels, being an average higher price, had a negative mix impact,” Zekulin said.

and like this fool knows what hes yappin about????


I just cant stop laughing ... :lol:
 

cannadan

Well-Known Member
"Speaking on a conference call with analysts, chief executive officer Mark Zekulin said Canopy Growth still commands between one-third and one-fourth of sales in that market segment, but the current figure is now at the lower end of that range."
hey all you math experts....whats 1/3 to 1/4 of nothing.....lol lol lol lol
 

CalyxCrusher

Well-Known Member
They say their loses come as a result of a flooded market for concentrates and extracts? Well if anything they flooded themselves out of the market. Like I said before the mountains of 5+ year old bunk had to be processed into concentrates and edibles. Wait for the same predictable outcome when they flood the market with their bunk edibles. Hahahahaha
 

The Hippy

Well-Known Member
They say their loses come as a result of a flooded market for concentrates and extracts? Well if anything they flooded themselves out of the market. Like I said before the mountains of 5+ year old bunk had to be processed into concentrates and edibles. Wait for the same predictable outcome when they flood the market with their bunk edibles. Hahahahaha
They think returns are bad now....hahahahaha...wait until all the edibles code out....lol.
Fail
BOYCOTT...it's working just fine.
The tarnished stoners prevail.
 

GreenHighlander

Well-Known Member
Funny how even teenagers have been able to make substantial profits selling weed over the years without having the law on their side or high prices, but somehow all these business and financial experts can't while having both the law and high prices on their side.
Its almost like the market they have been talking about didn't even exist lol

Cheers :)
 
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