sank Friday after the Canadian cannabis company reported a narrower fiscal second-quarter loss but pushed out its profitability target date.
The company posted an adjusted second-quarter loss of 3 cents a Canadian share vs. a year-earlier loss of 9 cents. The net loss was C$16.3 million, narrower than a loss of C$96.5 million last year. Canopy Growth (ticker: CGC) attributed the narrower loss to lower expenses in the quarter.
In a statement, the company said it was “pushing out positive adjusted Ebitda target due to market share challenges in the Canadian recreational business and a slower-than-expected ramp-up of U.S. distribution for BioSteel.” The company previously said it expected positive adjusted Ebitda in the second half of fiscal 2022.
BioSteel was acquired in 2019. It’s a sports hydration company.
The company said it expects revenue in the second half of fiscal 2022 to increase but the “magnitude and pace of improvement is expected to be more modest than previously anticipated.”
The stock tumbled nearly 14% to $11.41 on Friday. It has declined 54% year to date.
The company posted an adjusted Ebitda loss of C$162.6 million in the second quarter. The loss widened by C$77 million from a year earlier. Net revenue in the second quarter was C$131.4 million, 3% lower than same period in 2020.
“Achieving profitability remains a top priority. We are focused on increasing market share in Canada, premiumizing our product mix and delivering on our cost savings commitment,” said Mike Lee, chief financial officer.
Write to Karishma Vanjani at [email protected]