Cannabis Reform Slogs Through Congress as Corporate Revenues Continue to Tumble

Cannabis Reform Slogs Through Congress as Corporate Revenues Continue to Tumble
Cannabtimes

<![CDATA[The North American corporate cannabis sector has seen better days. Pandemic-galvanized sales surges are now mostly in the rearview mirror, and markets in large U.S. states and Canada have matured at a rapid clip. Despite the introduction of a new decriminalization bill, a lack of meaningful federal movement makes it feel like the industry is stuck at a crossroads.As we move into the second half of the year, let’s look at how things have gone for major U.S. and Canadian cannabis companies in 2022 and what we can expect going forward. For expert insight, Cannabis Business Times spoke to senior cannabis banking executives and advocacy groups.  Revenue & Profits Slow, Stocks Get SlaughteredQuarterly earnings reports and press releases showed a consistent theme: While revenues remain healthy and new markets continue to expand, growth is slowing down. Some companies are even experiencing downward trends in sales and revenue.Canopy Growth, one of Canada’s biggest producers, reported net revenue of $112 million in fiscal Q4 2022, a 25% decrease compared to Q4 2021’s $148.4 million. For the 2022 fiscal year, Canopy’s revenue dropped 5% compared to 2021. Its recreational and medical sales numbers are both down double-digit percentages from last year. In investor presentations released earlier this year, Canopy blamed these dips on factors like “lower production output, price compression in the Canadian recreational business” and “higher third-party shipping, distribution and warehouse costs.”American cannabis companies haven’t been spared from slowdowns. Massachusetts-based MSO Curaleaf drew more than $1 billion in revenue for the first time in 2021, good for 93% growth year-over-year. But in Q1 2022, the company reported quarter-over-quarter losses in revenue, profit and EBITDA. Curaleaf raised $425 million in a December 2021 private placement of senior secured notes, but as of March 31, 2022 had $243 million in cash against $584 million in…

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Source : Cannabis Reform Slogs Through Congress as Corporate Revenues Continue to Tumble

reposted by Cannabis News World

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