Canopy Growth Corp. reported the worst quarterly loss in its history as the company’s “value” cannabis sales declined as part of its business transition to “premium” products.
The Smiths Falls, Ontario-based business on Friday reported a first-quarter net loss of 2.1 billion Canadian dollars ($1.6 billion) after the struggling licensed producer booked goodwill impairments worth CA$1.7 billion related to its cannabis unit.
First-quarter net revenue for the financial year 2023 fell 19% compared to the first quarter of 2022, dragged down by plunging recreational marijuana sales.
For the three months ended June 30, Canopy’s recreational marijuana sales in Canada declined 35% year-over-year to CA$39 million. Sales were CA$60 million in the same period last year.
Canopy blamed the crashing sales on its “deliberate business transition to focus on higher margin, premium and mainstream products,” according to a news release announcing the quarterly results.
Global cannabis net revenue declined
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