(Reuters) – Pot producer Canopy Growth Corp reported a smaller adjusted core loss in its fiscal first quarter on Friday, as it benefited from cost cuts and a rise in cannabis use during the coronavirus pandemic.
People across North America have turned to cannabis for relaxation and entertainment during the months-long isolation caused by COVID-19, lifting sales of pot producers.
The cash-strapped sector has in recent months also attracted capital and renewed investor interest thanks to a wave of state-level legalization and potential federal marijuana reform in the United States.
Canopy, which has told investors it would turn profitable in the current fiscal year, said its adjusted gross margin improved by 1,400 basis points from a year earlier to 21%.
The company posted an adjusted core loss of C$63.6 million ($50.85 million) for the three months ended June 30, compared with a C$94 million loss in the fourth quarter.
($1 = 1.2508 Canadian dollars)
(Reporting by Shariq Khan in Bengaluru; Editing by Aditya Soni)