Canopy Growth reported a $374.6M loss for Q2 2020 (ending September 30), up 13% from its Q2 2019 loss of $330.6M.

Zekulin said, “The inability of the Ontario government to license retail stores, right off the bat, has resulted in half of the expected market in Canada simply not existing.”

  • He noted LPs should accept responsibility for the initial supply shortage that forced Ontario to shut down REC retail licensing, but concluded, “The fact is: there are not enough stores [in Ontario…] and the inability to get more stores rolled out is dramatically hurting the sector.”
  • Canopy president Rade Kovacevic said, “The Canadian market is 6-12 months behind where we thought it would be because of (slow) store openings.”
    Twitter—Matt Lamers

Canopy CFO Mike Lee said the company assumes Ontario will begin licensing 40 new stores per month beginning in January.
Twitter—David George-Cosh

Canopy took “a restructuring charge of $32.7M for returns, return provisions, and pricing allowances primarily related to its softgel & oil portfolio”—two products unpopular with consumers.

Inventory writedowns could become more widespread as wholesale prices decline and LPs that estimated the value of their “biological assets” at far greater than the present selling price are forced to adjust.
Financial Post