© Reuters. A sign featuring Canopy Growth Corporation’s logo is pictured at their facility in Smiths Falls, Ontario, Canada, January 4, 2018 .Picture taken January 4, 2018. REUTERS/Chris Wattie/File Photo
By Sourasis Bose
(Reuters) -Pot producer Canopy Growth (NASDAQ:) reported a smaller second-quarter adjusted core loss on Thursday on the back of cost cuts.
The company has been grappling with liquidity issues and has taken several steps to turn profitable including job cuts, exits from some international markets, store closures and divestiture of its retail business across Canada.
Canopy Growth said it cut another C$54 million in costs during the reported quarter. Its operating expenses were down nearly 80% at C$30.43 million.
Canopy said in September it would seek bankruptcy protection for its sports nutrition products segment BioSteel and lay off 181 employees to rein in costs and focus on cannabis.
The company’s adjusted core loss narrowed to C$11.9 million ($8.62 million) for the three months ended Sept. 30, compared with a loss of C$56.4 million a year earlier.
“We have undertaken significant actions to eliminate near-term obligations in terms of debt,” CFO Judy Hong said on a post-earnings call.
Canopy Growth’s net revenue fell 21% to C$69.6 million in the quarter as the company exited its retail Canadian business.
The company said it had received a letter from the U.S. Securities and Exchange Commission objecting to its de-consolidation of its U.S. holding company from its financial results.
The company had created Canopy USA last year to speed up its entry in the United States and buy partners Acreage Holdings (OTC:), Wana Brands and Jetty Extracts.
($1 = 1.3808 Canadian dollars)
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