<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Canopy Growth’s (WEED.TO)(CGC) sales climbed to $124 million in the company’s fiscal third quarter of 2020, topping analyst estimates while posting a narrower loss. The company largely attributed the revenue increase to over 140 pot stores opening their doors.” data-reactid=”15″>Canopy Growth’s (WEED.TO)(CGC) sales climbed to $124 million in the company’s fiscal third quarter of 2020, topping analyst estimates while posting a narrower loss. The company largely attributed the revenue increase to over 140 pot stores opening their doors.
The Smiths Falls, Ont.-based licenced producer’s net revenue for the three months ending Dec. 31, 2019 represents a 62 per cent increase from the $76 million reported in the previous quarter.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“Adding more stores is a pressure relief valve for some of the ills of the cannabis sector at the moment,” chief executive officer David Klein told Yahoo Finance Canada in an interview on Friday. “The biggest driver for us is being consistently on the shelf for more consumers.”” data-reactid=”17″>“Adding more stores is a pressure relief valve for some of the ills of the cannabis sector at the moment,” chief executive officer David Klein told Yahoo Finance Canada in an interview on Friday. “The biggest driver for us is being consistently on the shelf for more consumers.”
The company shrunk its EBITDA loss to $92 million, compared to $156 million in the prior period.
Toronto-listed shares shot up nearly 20 per cent in early trading.
Analysts polled by Bloomberg expected net revenue of $105 million and an EBITDA loss of $110 million.
“Make no mistake, we have a lot of work to do,” Klein said on a conference call with analysts on Friday. “I am already taking actions to keep us in the leadership position in the cannabis industry.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The former chief financial officer of Canopy’s largest shareholder, Corona beer-maker Constellation Brands (STZ), started leading the pot giant in January following a months-long search to replace ousted co-CEO Bruce Linton.” data-reactid=”33″>The former chief financial officer of Canopy’s largest shareholder, Corona beer-maker Constellation Brands (STZ), started leading the pot giant in January following a months-long search to replace ousted co-CEO Bruce Linton.
In his first earnings call as Canopy’s chief executive, Klein spelled out his three-pronged set of priorities for the world’s largest cannabis producer by market capitalization. They include; improving relationships with customers, bringing more focus and discipline to the business, and defining a path to profitability and positive free cash flow.
“We will do this by delivering on our commitments in a thoughtful and measured fashion,” he said. “The industry has evolved and we need to focus on specific markets where we have the legitimate right to win.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="One market he intends to win is the United States. Canopy has a deal in place to acquire New York-based Acreage Holdings (ACRG-U.CN)(ACRGF) should cannabis sales become legal under U.S. federal law. The company recently commenced online sales of its U.S.-focused CBD brand First & Free.” data-reactid=”36″>One market he intends to win is the United States. Canopy has a deal in place to acquire New York-based Acreage Holdings (ACRG-U.CN)(ACRGF) should cannabis sales become legal under U.S. federal law. The company recently commenced online sales of its U.S.-focused CBD brand First & Free.
“We want to and need to move faster and make bolder moves in the U.S., and are focused on creating brands that resonate with our consumers,” he said.
Klein’s plan to steer Canopy towards profitability includes an ongoing “strategic review” of the company’s cultivation footprint. Analysts have raised concerns about Canopy’s inventory outstripping demand in the legal market.
“We’re prepared to take initial steps to right-size our business over the next 90 days,” he said.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Open for business” data-reactid=”40″>Open for business
The slower-than-expected roll out of physical retail locations in Canada, especially in Ontario, has been been a persistent headwind for the legal cannabis sector at large.
Klein’s predecessor, Mark Zekulin, said last November that delays in Ontario resulted in half of the expected market in that province “simply not existing.”
Canada’s most populous province overhauled is regulatory process for approving new stores late last year. The Ontario government expects store authorizations at a pace of 20-per-month beginning in April.
Canopy reported a dominant 22 per cent share of Canada’s recreational market. Recreational sales increased eight per cent quarter-over-quarter. The company attributes that strength to strong demand for both premium and value-priced dried flower and pre-rolled joints.
The company said holiday spending in the quarter added about $5 million in incremental sales.
“We were particularly encouraged to see Canopy print a solid sequential increase in its recreational sales in a period where many of its peers are anticipated to see flat to lower revenues,” Canaccord Genuity analyst Matt Bottomley wrote in a note to clients on Friday.
He points out that Canopy’s recreational average selling price per gram was two per cent higher quarter-over-quarter at $5.79, while some peers reported declines of between 10 and 20 per cent.
Canopy saw a five per cent quarterly increase in medical sales, stronger revenue from its international C3 cannabis business and improved medical sales in Germany.
Canopy noted that cost-cutting measures and reduced stock-based compensation also led to the smaller quarterly loss.
“We plan to take further steps to reduce our costs and right-size our business to ensure that we can generate a healthy margin profile and cash generation in the coming years,” chief financial officer Mike Lee said in the statement.
CIBC analyst John Zamparo said the warm reception from investors on Friday may reflect relief among those who had braced for bad news.
“Many investors had expected this quarter had potential for noisy results stemming from further revenue provisions and potential asset impairments. The company announced none of either,” he wrote in a note to clients.
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="No word on drinks timeline” data-reactid=”57″>No word on drinks timeline
Notably absent in the financial filings was a promised update on the status of the company’s delayed cannabis drinks portfolio.
Canopy said in December that its infused beverages would hit the market in early January, before announcing a delayed launch on Jan. 17.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Yahoo Finance Canada reported on Thursday that issues related to the company’s use of aluminum cans may be responsible for the setback. Canopy told Yahoo Finance Canada in an email that it was aware the packaging could be a risk, without offering specific details.” data-reactid=”60″>Yahoo Finance Canada reported on Thursday that issues related to the company’s use of aluminum cans may be responsible for the setback. Canopy told Yahoo Finance Canada in an email that it was aware the packaging could be a risk, without offering specific details.
Speaking on the earnings call, Klein did not address the specific cause of the delay. He suggested problems occurred in the transition from “lab scale” to “commercial scale.”
“We’ve had some issues as we’ve made that jump. Also, understand that it’s a very involved quality process that we’re putting ourselves through,” he said. “It’s just taking longer than we would like, but we think it’s worth getting the products right as opposed to rushing them out there to make an in-market date.”
Samsung chairman Lee Kun-hee, head of South Korea's biggest conglomerate, dies at 78 – Reuters
SEOUL, Oct 25 (Reuters) – South Korea’s Samsung Electronics Chairman Lee Kun-hee died on Sunday, the company said.
Born in 1942, Lee helped grow his father Lee Byung-chull’s noodle trading business into South Korea’s biggest conglomerate. (Reporting by Cynthia Kim, Joyce Lee; Editing by William Mallard)
Eastern Ontario Health Unit imposes new COVID-19 restrictions on restaurants, gyms, fitness centres – CTV Edmonton
The Eastern Ontario Health Unit is imposing new restrictions on food and drink establishments, sports and recreation facilities and personal care services in Alexandria, Cornwall, Casselman, Clarence-Rockland, Hawkesbury and other areas of eastern Ontario.
The new measures to limit the spread of COVID-19 in the community were announced as Public Health Ontario reported 43 new cases of COVID-19 in the Eastern Ontario Health Unit region on Saturday.
Medical Officer of Health Dr. Paul Roumeliotis issued a new Order under Section 22 of the Health Protection and Promotion Act that will come into effect on Monday, and remain in effect for 28 days.
“The last thing I want is for businesses in our community to have to shut their doors again as they did in the spring,” said Dr. Roumeliotis.
“By putting these new measures in place, I’m hoping we can stop the rising number of infections and prevent another shutdown that would hurt our economy.”
The new COVID-19 measures include limiting the number of people who can be seated at a table in bars and restaurants to a maximum of six people, while the total number of patrons in the indoor and outdoor sections of a food and drink establishment must not exceed 100.
Indoor dining at bars and restaurants in eastern Ontario is still allowed.
For banquet halls, the total number of patrons permitted in the premises is limited to the number that can maintain a physical distance of at least two meters, and in any event cannot exceed 50 indoors or 100 outdoors.
Establishments must also conduct a COVID-19 screening on every patron and record their name and contact information.
“This really mimics what happened on Oct. 2 when Ottawa, Toronto and Peel were put in these enhanced zones, before they were put into the red hot zone,” said Dr. Roumeliotis during a media conference late Friday.
“I think this is very fair request and saving closures.”
The new measures for indoor sports and recreational facilities include limiting the total number of people permitted in a class, organized program or organized activity to a maximum of 10 people, excluding instructors/trainers/coaches.. The total number of people permitted to be indoors at the facility in areas containing weights or exercise machines cannot exceed 50.
The order applies to gymnasiums, health clubs, community centres, multi-purpose facilities, arenas, exercise studios, yoga studios, dance studios, and other indoor fitness centres.
For personal care settings, including hair salons and barber shops, manicure and pedicure salons, spas and tanning salons, they must conduct a COVID-19 screening for every client and record their name and contact information.
Last Sunday, Dr. Roumeliotis told CTV News Ottawa the region may have to consider moving to a modified Stage 2, like Ottawa, due to rising COVID-19 cases.
On Thursday, the medical officer of health said he was no longer recommending eastern Ontario move into a modified Stage 2, but wanted to impose new restrictions on establishments to help limit the spread of COVID-19.
Ontario introduced new restrictions on bars, restaurants, fitness centres and other recreation complexes in Ottawa on Oct. 2. On Oct. 10, the Ontario Government moved Ottawa into a modified Stage 2, which included prohibiting indoor dining at bars and restaurants, and closed gyms, fitness centres and movie theatres.
6 New Cases Of COVID-19 In Windsor Essex As Of Saturday – windsoriteDOTca News
The Windsor Essex County Health Unit has announced 6 new cases of COVID-19 as of Saturday, bringing the local total to 2,787. They say 2,686 people locally have recovered.
Cases increased from 2,781 on Friday October 23rd to 2,787 on Saturday October 24th and 25 cases of COVID-19 are currently active in Windsor-Essex.
The Health Unit says 2 cases are local health care workers, 2 cases are close contacts of confirmed cases, and 2 cases are community acquired.
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There have been no additional deaths due to COVID-19 as of Saturday and the local death toll stands at 76.
As of Saturday, the Health Unit lists 2 people as hospitalized with confirmed cases of COVID-19 in Windsor Essex, and 1 person in the ICU. One hospitalization is listed at Windsor Regional Hospital.
As of Saturday, the Health Unit says the following workplaces are under outbreak:
- 1 construction company (in Lakeshore)
- 1 food & beverage services company (in Kingsville)
A workplace outbreak is declared when two or more employees test positive for COVID-19 within a reasonable timeline to suspect transmission in the workplace, according to the Health Unit. Officials with the Health Unit have said a workplace will only be named if a threat to the public exists.
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Samsung chairman Lee Kun-hee, head of South Korea's biggest conglomerate, dies at 78 – Reuters
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