The U.S.-listed shares of Canopy Growth Corp. rose 0.8% in premarket trading Tuesday, even after the Canada-based cannabis company reported a wider-than-expected fiscal fourth-quarter loss and revenue that rose less than forecast. The net loss for the quarter to March 31 narrowed to C$700.0 million ($581.5 million), or $1.85 a share, from loss of $1.30 billion, or $3.72 a share, in the same period a year ago. The FactSet consensus for net losses per share was 25 cents. Net revenue rose 37.6% to C$148.4 million ($123.3 million), below the FactSet consensus of C$151.4 million, as total net cannabis revenue rose 27% to C$101 million. Canadian recreational cannabis revenue was C$61.1 million, up 39% from the sequential fourth quarter, while Canadian medical cannabis revenue grew 30% go C$74.8 million. Gross margin percentage was 6.6%, compared with negative 85.1% a year ago. The company said its cost-savings program is on track to deliver C$150 million to C$200 million of savings within the next 18 months, and the company remained committed to its path to profitability by the end of fiscal 2022. “We made tremendous progress improving our supply chain and right-sizing our manufacturing footprint, bringing supply and demand into balance,” said Chief Executive David Klein. The stock has gained 5.9% year to date through Friday, while the Cannabis ETF has rallied 42.8% and the S&P 500 has gained 11.9%.
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