3 Reasons Canopy Growth Won't Be Profitable Anytime Soon
You'll have to go back to the third quarter of fiscal year 2019, which ended on Dec. 31, 2018, to find a quarterly profit for Canopy Growth (NYSE: CGC). And that profit came with a big asterisk: Canopy's positive earnings of $74.9 million Canadian stemmed entirely from the drop in the fair value of the company's senior convertible notes because its stock sank during the quarter.
CEO Mark Zekulin said in Canopy's fiscal 2020 Q1 conference call in August that the company was "committed to its Canadian business delivering positive adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] on a quarterly basis within fiscal 2021." He also stated that Canopy plans to have "a sustainable, high-margin, profitable Canadian business."
But Zekulin didn't talk about profitability in Canopy's most recent quarterly update, as the company posted a net loss of nearly CA$375 million. Don't expect him to speak much about it in the near future, either. Here are three reasons Canopy Growth won't be profitable anytime soon.
Source Fool.com
