(Reuters) – Canadian pot producer Canopy Growth Corp <WEED.TO> <CGC.N> reported a smaller-than-expected quarterly loss on Monday, as restructuring helped it rein in costs and coronavirus-related lockdowns lifted demand for cannabis products.
Sales at Canopy and other cannabis companies rose as customers stockpiled ahead of coronavirus-led lockdowns, with so-called ‘cannabis 2.0’ products, including chocolates, beverages, vapes, seeing the heaviest demand.
“We grew our revenue year-over-year and are seeing market share improvement, notably achieving number one market share in cannabis-infused beverages in the Canadian market,” Chief Executive David Klein said in a statement.
U.S.-listed shares of the company rose 6.3% in premarket trade.
Canopy and many of its Canadian peers launched company-wide restructurings at the start of this year as investors shunned the cannabis industry’s extravagance and lack of profits.
Klein said the company has cut its headcount by over 18% since the beginning of 2020, reduced expense and cash burn in the first quarter and will be “further optimizing” operations. [nPn2xFPzTa]
The Ontario-based company’s revenue rose to C$119.1 million ($88.97 million) in the quarter ended June 30, beating analyst’s expectations of C$93.5 million, according to Refinitiv IBES data.
On an adjusted basis, the company’s loss of 25 Canadian cents per share was much smaller than loss estimates of 44 Canadian cents.
($1 = 1.3387 Canadian dollars)
($1 = 1.3386 Canadian dollars)
(Reporting by Shariq Khan in Bengaluru; Editing by Vinay Dwivedi)
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