Pot producer Canopy Growth's loss narrows on lower costs, uptick in Canada business

(Reuters) - Pot producer Canopy Growth reported a smaller third-quarter loss on Friday, helped by cost cuts and an increase in revenue from its Canada business.

Cannabis companies have been cutting costs and taking measures to reduce inventory to preserve cash and improve finances.

Pot producers witnessed a slowdown after the pandemic as consumers cut back on spending amid elevated levels of inflation and on tough competition from illegal sellers.

Canopy Growth said on Friday its Canadian business-to-business net revenue rose 9%, while medical revenue climbed 11%.

The company's gross margin for Canada cannabis segment improved to 28%.

Canopy Growth had raised doubts about the company's ability to continue as a going concern last year, as the company struggled to turn profitable and later sold its sports nutrition products unit Biosteel after seeking bankruptcy protection for it.

The company said it reduced overall debt by C$69 million ($51.29 million) during the reported quarter.

Net loss attributable to the company fell to C$216.8 million for the quarter ended Dec. 31, compared with a loss of C$259.5 million a year earlier.

($1 = 1.3452 Canadian dollars)

(Reporting by Tanay Dhumal and Sourasis Bose in Bengaluru; Editing by Shounak Dasgupta)