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Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) announced its financial results for the fourth quarter and fiscal year 2021 ending March 31, 2021. Canopy Growth’s revenue increased 38% to $148 million. The net losses for the quarter were $617 million, an improvement over 2020’s net losses of $710 million. The company blamed the bloated net losses on non-cash fair value changes of $292 million and impairment and restructuring charges of $75 million primarily related to changes to its Canadian operations that were announced on December 9, 2020.
For the full year, net revenue increased 37% to $546 million over the prior year driven by double-digit growth across Canadian cannabis, international cannabis and other consumer products businesses. Total net cannabis revenue of $379 million in the fiscal year 2021, represented an increase of 28% over the prior year.
The reported fiscal year 2021 net loss of $1.7 billion, a $283 million wider loss than fiscal year 2020, was driven primarily by the year-over-year change in other income (expense), net, the reduction in the income tax recovery, and expected credit losses on financial assets and related charges, and partially offset by the year-over-year improvement in gross margin and reductions in selling, general and administrative expenses, share-based compensation expense, and asset impairment and restructuring charges.
Harborside Inc. (CSE: HBOR) (OTCQX: HBORF) reported its financial results for the first quarter ending March 31, 2021, after the market close on Monday. Harborside reported that its net revenues fell 9% to $12.4 million versus last year’s $13.7 million for the same time period. This missed the Yahoo Finance average analyst estimate for revenues of $13.65 million. The company blamed the decline on decreased store traffic due to COVID-19 restrictions, however, there were also declines in the wholesale business related to lower yields. The net losses for the quarter grew 21.9% to $2.9 million from last year’s $2.3 million.
Following the earnings announcement, Harborside said it was buying California-based Sublimation Inc. also known as Sublime for $43.8 million. The acquisition is expected to close in July 2021. Founded in 2016, Sublime is best known for its expansive line of high-potency, high-quality and affordable, Fuzzies branded pre-rolls, a leading brand of pre-rolls in the state of California, as well as vapes and roll-your-own flower kits.
Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) reported its financial and operating results for the first quarter of 2021 with total revenue in the first quarter of $23.1 million versus $0.95 million in the first quarter of 2020 and up 97% sequentially from $11.7 million in the fourth quarter of 2020. The net income for Hollister in the first quarter was $2.0 million versus a net loss of $2.2 million in the first quarter of 2020. The adjusted EBITDA was $2.80 million in the first quarter compared to a loss of $1.1 million in the first quarter of 2020. Investors seemed pleased with the results as the stock was moving higher by almost 20%. U.S. markets were closed on Monday for the Memorial Day holiday.
In Other News
The Scotts Miracle-Gro Company (NYSE: SMG) announced increased sales and earnings guidance for fiscal 2021 based on the continued strength of both its U.S. Consumer and Hawthorne segments. For the fiscal year ending September 30, 2021, ScottsMiracle-Gro now expects company-wide sales growth of 17% to 19%. The revision is due mainly to stronger growth in the U.S. Consumer segment, where the Company now expects sales growth of 7 to 9%, compared with its previous range of 4 to 6%. Hawthorne sales also continue to exceed expectations as the Company now expects sales growth of 40 to 45% for the full year, compared with previous guidance of 30 to 40% growth.
As a result, adjusted non-GAAP earnings are expected to be in a range of $9.00 to $9.30 per share. This compares to the previous guidance of $8.60 to $9.00 per share. Adjusted non-GAAP results exclude impairment, restructuring and other one-time expenses.
Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQX: EMHTF) has released its financial results for the three months ended March 31, 2021. Net sales of $2.3M decreased 22% compared to net sales of $2.9M in 1Q20 and decreased 25% from net sales of $3.0M in 4Q20. Volumes sold in 1Q21 were in line with 1Q20, while the average selling price per gram decreased from $4.32 to $3.65 in the adult-use channel. Total SG&A expense of $3.5M, which includes $0.6M of non-cash expenses, decreased $2.4M from $6.0M in 1Q20 and decreased $10.6M from $14.1M in 4Q20. Net loss of $2.9M improved by $2.0M from $4.9M in 1Q20 and improved by $5.2M from $8.1M in 4Q20.