(Reuters) - Canopy Growth Corp (TO:WEED) (N:CGC) reported a smaller quarterly loss on Monday, buoyed by cost cuts and more people turning to cannabis to cope with coronavirus-related lockdowns.
Its U.S.-listed shares jumped 9.3%, after the world's largest pot producer also said it was taking steps to cut as much as C$200 million in costs, without giving details on how and when will it achieve the target. The stock gained over 25% last week on U.S. election enthusiasm.
Canopy and its rivals shuttered plants, laid off hundreds of employees, and took other steps this year to cut expenses as the cannabis sector faces strong pressure from investors disappointed by a lack of profitability.
Smith Falls, Ontario-based Canopy's total selling, general and administrative expenses fell 18.9% to C$147.3 million in the three months ended Sept. 30.
On an adjusted basis, the company posted a loss before interest, taxation, depreciation and amortization of C$85.7 million ($65.86 million), compared with a loss of C$150.4 million a year earlier.
Revenue rose nearly 77% to C$135.3 million, beating analysts' average estimate of C$116.5 million, according to IBES data from Refinitiv, as more people turned to weed for both recreational and medical usage.
