LAURIE WEIR
SMITHS FALLS — Canopy Growth Corporation reported higher sales in its Canadian cannabis business for the first quarter of fiscal 2026, according to financial results released Friday, Aug. 8.
For the three months ending June 30, the company posted net revenue of $72.1 million, up nine per cent from $66.2 million in the same quarter last year. Canadian adult-use cannabis sales increased 43 per cent to $27 million, while total cannabis sales, including medical and international markets, reached $57 million, up 24 per cent from $46.1 million.
“We delivered strong top line growth in the first quarter of fiscal 2026, led by momentum in our Canada adult-use cannabis business… This reflects the early impact of our focused commercial strategy and more disciplined execution,” CEO Luc Mongeau said in the company’s statement.
Canadian medical cannabis sales rose 13 per cent to $21.2 million, and international markets brought in $8.8 million, a four per cent increase. Canopy said supply chain improvements in Europe are expected to support higher-margin sales later in the fiscal year.
While sales improved, the company’s gross margin declined to 25 per cent from 35 per cent in the same quarter last year. The statement attributed the decrease to changes in product mix and lower sales in higher-margin markets such as Poland.
The company has achieved $17 million of its $20 million annualized cost-savings target since March, with selling, general and administrative expenses reduced by 21 per cent year-over-year.
“Our financial discipline has already delivered meaningful operating expense reductions, and we see further opportunity to simplify and focus the business,” said interim CFO Tom Stewart.
Despite the higher sales and reduced costs, Canopy reported a net loss of $41.5 million for the quarter, compared with a $129.2 million loss in the same period last year.
The company’s Storz & Bickel vaporizer division reported sales of $15.1 million, down 25 per cent from $20.1 million last year. A new vaporizer launch is planned for later in 2025.
Canopy also announced the appointment of Margaret Shan Atkins to its board of directors. Atkins is a former Bain & Company partner and senior retail executive who has served on several public company boards, including Aurora Cannabis.
