Nov 9 (Reuters) – Pot producer Canopy Growth Corp (WEED.TO) reported a lower second-quarter base loss on Wednesday, helped by increased sales and cost-cutting measures, pushing its shares higher traded in the United States by about 3% before the bell.
Canopy has redoubled its efforts to become profitable, including cost reductions through layoffs, exits from certain international markets, store closures and the divestiture of its retail operations across Canada. Read more
Last month, the company announced that it would form a holding company to accelerate its entry into the United States, which is expected to represent a market of more than $50 billion by 2026.
US President Joe Biden recently called for a review of the classification of marijuana. A potential change in the legislation should further benefit cannabis producers.
Canopy Growth’s Canadian medical cannabis business earned C$14.2 million in the quarter, up 8% from the prior quarter. Sales of his BioSteel business, which sells sports and health drinks, more than tripled to C$29.9 million.
The company posted an adjusted basic loss of C$78.1 million ($58.13 million) in the second quarter, compared with a loss of C$162.6 million a year earlier.
($1 = 1.3436 Canadian dollars)
Reporting by Mrinalika Roy in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli
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