Canopy Growth pushes back target for positive EBITDA, posts bigger loss
Nov 5 (Reuters) - Canada's Canopy Growth Corp on Friday pushed back its target for positive adjusted EBITDA, citing domestic supply challenges and a delayed revenue ramp in the United States, after the pot producer posted a bigger second-quarter adjusted core loss.
Profits have been wearing thin at most cannabis firms despite more than three years of Canada's legalization of recreational cannabis, weighed down by fewer-than-expected retail stores, cheaper rates on the black market and sluggish overseas growth.
Canopy said it continued to expect a revenue acceleration in the second half of fiscal year 2022 but the magnitude and pace of improvement are expected to be more modest than previously anticipated.
The company said it was focused on stabilizing its market share of Canadian recreational cannabis in the second half of fiscal year 2022. "Achieving profitability remains a top priority," Chief Financial Office Mike Lee said.
The world's biggest pot producer said it was taking a number of actions to improve its Canadian performance and remained optimistic about the mid- to long-term outlook.
The company said last month it would buy weed gummies maker Wana Brands for $297.5 million, as it looked to expand in the U.S. cannabis market.
On an adjusted basis, the company posted a loss before interest, taxation, depreciation and amortization of C$163 million ($130.66 million) for the three months ended Sept. 30, compared with a loss of C$85.7 million a year earlier.
($1 = 1.2475 Canadian dollars) (Reporting by Sahil Shaw in Bengaluru; Editing by Shailesh Kuber and Maju Samuel)
