$32.7 million charge from returned products; $15.9 million write-down for excess inventory
Canopy Growth Corp.’s CEO Mark Zekulin is calling on the Ontario government to immediately commit to opening more retail stores across the province, as the industry reels from declining revenues, weak sales, falling prices and an inventory pile-up.
“The fact of the matter is there are not enough stores, and enough supply. The Ontario government has made it clear their desire to have more stores, but why wait three months? Fix it now,” he told the Financial Post in an interview.
Both Canopy and Aurora Cannabis Inc., two of the country’s largest licensed producers, saw major declines in revenue for the quarter ending Sept. 30.
Canopy took a $32.7 million hit from product returns and pricing changes linked primarily to the sales of its oil and soft-gel capsule products, resulting in the company’s net revenue plummeting 15 per cent to $76.6 million for the quarter ending Sept. 30.
Vanmala Subramaniam – Financial Post – November 14, 2019.