Canopy Growth Corporation (TSX:WEED, NYSE:CGC) after Thursday’s close announced that its second-quarter 2024 adjusted core loss improved to C$11.9 million from a loss of C$56.4 million a year earlier, after the Canadian cannabis company reduced its costs by an additional C$54 million during the quarter.
Its operating expenses for the period fell nearly 80% to C$30.43 million and the company has eliminated C$226 million in costs since the beginning of fiscal year 2023.
Canopy’s 2Q net revenue, meanwhile, decreased 21% year over year to C$69.6 million as the company exited its retail Canadian business.
Its year-ago revenue figure of C$118 million was 10% lower than the company reported in 2Q 2022.
One of the few brights spots for Canopy Growth was that its global medical cannabis business achieved record revenue in Australia during the period.
"Our financial results demonstrated marked improvement this quarter, including significant gross margin gains and reduced cash burn," Canopy Growth chief financial officer Judy Hong said in a statement.
Looking ahead, the company said it aims to achieve positive adjusted EBITDA across its businesses by the end of fiscal 2024 and expects its total debt to be around $570 million.
Shares of Canopy Growth rose as much as 2% in Friday’s pre-market trading in the US but have lost 77% year to date.
Contact Sean at sean@proactiveinvestors.com