Canopy Growth Significantly Shrinks Its Loss in Q1: Is Now the Time to Buy?
Last quarter was an unusual one for Canopy Growth (NASDAQ: CGC). The troubled cannabis producer didn't incur huge impairment charges, its loss was just a tiny fraction of what it was a year ago, and it even achieved year-over-year revenue growth. Has the business finally turned things around, and is now a good time to buy the stock, or is this just a one-off result for the company?
For the first quarter of fiscal 2024 and the three-month period ended June 30, Canopy Growth's net revenue totaled 108.7 million Canadian dollars ($80.4 million), showing a modest single-digit improvement from the prior-year period when net revenue came in at CA$105.9 million.
The biggest growth driver was its BioSteel business, which features sports hydration products. Its sales more than doubled to CA$32.5 million, now accounting for nearly a third of Canopy Growth's top line. Storz & Bickel, the company's vape business, was the only other segment that generated double-digit percentage revenue growth; its sales grew by 16% to CA$18.1 million. It would have been a stronger growth quarter for the company if not for its retail cannabis business, which Canopy Growth has divested from, and, as a result, generated no revenue during the period.
Source Fool.com
