June 1 (Reuters) - Canopy Growth Corp's
chief executive reassured investors that the world's most
valuable pot producer is on track to be profitable within a
year, shrugging off a slightly weaker-than-expected
The company - which sells a range of products from dried
flowers to gummies, to chocolates and drinks mixed with weed -
posted a near 38% surge in revenue to C$148.4 million in the
quarter but missed estimates of C$151.8 million, according to
The company's revenue growth was subdued by a fresh round of
COVID-19 related lockdowns in Canada and Germany, Canopy's CEO
David Klein told Reuters in an interview.
While the company is "a little concerned" that the
lockdowns, especially in Canada, might also hold back growth in
the current quarter, Klein said the company was still on track
to be profitable by the end of its current fiscal year.
"The way it looks, there will be sequential improvement (in
adjusted EBITDA) throughout the year," Klein said.
A host of cost-cutting through last year helped Canopy
narrow its quarterly adjusted loss before interest, taxes,
depreciation, and amortization to C$94 million from C$102
"You have a company that is building on revenue growth
success ... and a lot of their strategic initiatives are paying
off when it comes to the brands they have in their portfolio,"
Global X analyst Andrew Little said.
Global X, which owns about 600,000 Canopy Growth shares,
runs a cannabis focused ETF.
Klien said the focus was now firmly on the U.S. market,
where expectations were rising for federal marijuana reform.
"We're very happy with our portfolio in Canada and with the
ability of that portfolio to travel to the U.S. ... wouldn't see
us doing much more in the way of M&A in Canada," Klein said on a
($1 = 1.2044 Canadian dollars)
(Reporting by Arunima Kumar and Shariq Khan in Bengaluru;
Editing by Aditya Soni, Shailesh Kuber and Anil D'Silva)