This Is the Biggest Problem in Canopy Growth's Q4 Earnings Report
Canopy Growth (NYSE: CGC) released its fourth-quarter results on May 29. The number that garnered attention was the company's mammoth loss, which totaled $1.3 billion Canadian dollars. It's another big loss from a company that's been no stranger to them in the past. And while that may be disappointing, there's a more troubling number that investors should be focused on -- revenue.
In Q4, Canopy Growth reported net revenue of CA$107.9 million. That's up a modest 15% from the prior-year period where net sales were CA$94.1 million. That's in sharp contrast from the 76% sales growth that the pot producer generated during the full fiscal year.
What's perhaps even more concerning is that it was less than the CA$123.8 million that the Ontario-based cannabis company generated in its third-quarter. The Q3 revenue decline was caused by Canadian recreational revenue falling by 28%. Within this segment, business-to-business sales dropped by 31%, while consumer revenue was down by 14%.
Source Fool.com
