Canopy Growth Reports Fourth Quarter and Fiscal Year 2024 Financial Results; Q4 FY2024 Net Revenue increased 7% year-over-year, or 16% excluding divested businesses
Canopy Growth announced its Q4 FY2024 and fiscal year 2024 results, highlighting a 7% year-over-year revenue increase for Q4, or 16% excluding divested businesses. Notably, Storz & Bickel's revenue surged 43% compared to Q4 FY2023, driven by the new Venty portable vaporizer. Canada medical cannabis revenue grew 16% in Q4 and 10% for the fiscal year. Cost of Goods Sold in Canada decreased by 54% for FY2024. Despite an operating loss of $229 million for FY2024, adjusted EBITDA loss improved by 72% year-over-year to $59 million. The company holds $203 million in cash and investments and has no major debt obligations until March 2026.
- Q4 FY2024 net revenue increased by 7% YoY.
- Storz & Bickel's Q4 revenue grew by 43% YoY.
- Canada medical cannabis net revenue increased by 16% in Q4 FY2024.
- Canada cannabis Cost of Goods Sold decreased by 54% in FY2024.
- Adjusted EBITDA loss improved by 72% YoY to $59 million in FY2024.
- Cash and investments total $203 million as of March 31, 2024.
- No material debt obligations until March 2026.
- FY2024 net loss from continuing operations was $483.7 million.
- FY2024 net revenue decreased by 11% YoY.
- Operating loss from continuing operations was $229 million in FY2024.
- Free cash flow was negative $231.9 million in FY2024.
- SG&A expenses, although decreased, still indicate inefficiencies.
Insights
Canopy Growth's fourth-quarter and fiscal year 2024 financial results present a mixed bag of improvements and ongoing challenges. Net revenue increased by
The decrease in Cost of Goods Sold (COGS) by
Retail investors should be cautious but optimistic. The lack of material debt obligations until March 2026 provides financial stability, giving the company a buffer to focus on growth and innovation. However, the substantial net loss and adjusted EBITDA loss need to be monitored closely. The company’s financial health is improving, but it is still navigating a challenging landscape.
The growth in the Storz & Bickel segment, driven by the launch of the Venty portable vaporizer, is noteworthy. This segment's revenue increase of
The company's strategy to expand its product distribution, with over 2,300 new points of distribution in the Canadian market, underscores its commitment to capturing market share. However, the international markets segment's
In summary, while Canopy Growth shows promising signs of market traction and product innovation, the overall market conditions and regulatory landscape will play important roles in its long-term success.
Canopy Growth's financial report includes several strategic moves following the quarter, such as the initiation of acquisitions of Mountain High Products, LLC, Wana Wellness, LLC and The Cima Group, LLC, as well as Lemurian, Inc. These acquisitions are pivotal as they are expected to close in the first half of FY2025, potentially bolstering Canopy Growth's presence in the U.S. market.
The overwhelming shareholder approval for the creation of a new class of non-voting and non-participating exchangeable shares further strengthens the company's strategic positioning. This maneuver, along with Constellation Brands Inc. converting its common shares to exchangeable shares, is designed to streamline Canopy Growth's capital structure and align it with its growth strategy in the U.S.
While these legal and strategic actions are positive, they also come with risks, particularly related to regulatory compliance in different jurisdictions. Investors should be aware of the complexities involved in cross-border operations and the potential legal hurdles that could arise.
Storz & Bickel® delivered its best Q4 revenue quarter, with net revenue increasing
Following recent balance sheet actions, the Company has no material debt obligation due until March 20261
- Storz & Bickel® net revenue in Q4 FY2024 increased
43% as compared to Q4 FY2023 driven by strong sales of the new Venty portable vaporizer. Canada cannabis net revenue in Q4 FY2024 increased4% as compared to Q4 FY2023 led by a16% increase in theCanada medical cannabis business.- Total Cost of Goods Sold ("COGS") decreased by
45% in FY2024 andCanada cannabis COGS decreased by54% year-over-year, driven by the cost reduction actions. - Consolidated Gross Margins increased to
27% , an improvement of 4,600 basis points year-over-year in FY2024, withCanada cannabis, International markets cannabis and Storz & Bickel all posting higher Gross Margins year-over-year. - Operating loss from continuing operations of
$229 $59 72% year-over-year, driven primarily by revenue growth and successful cost reduction actions taken to date. - Cash, cash equivalents, and short-term investments of
$203
"In Fiscal 2024 we fortified Canopy's foundation for future growth. With a resolute focus on cannabis, we have momentum and are poised to seize the opportunity presented by continued regulatory developments in
David Klein, Chief Executive Officer
"We have made remarkable progress and delivered dramatic reductions in expenses, cash burn, and debt over the past year. These efforts have significantly enhanced our financial stability and moved us toward achieving positive Consolidated Adjusted EBTIDA. With no material debt maturing until 2026, Canopy is equipped to capitalize on growth opportunities and enhance shareholder value."
Judy Hong, Chief Financial Officer
(in millions of Canadian | Net Revenue | Gross margin | Adjusted | Net loss from | Adjusted | Free cash | |
Reported | 21 % | 21 % | |||||
vs. Q4 FY2023 | 7 % | 11,500 bps | 1,000 bps | 84 % | 63 % | 77 % |
(in millions of Canadian | Net Revenue | Gross margin | Adjusted | Net loss from | Adjusted | Free cash | |
Reported | 27 % | 27 % | |||||
vs. FY2023 | (11 %) | 4,600 bps | 2,200 bps | 84 % | 72 % | 43 % |
- Storz & Bickel® net revenue in Q4 FY2024 increased
43% as compared to Q4 FY2023 to$22 41% in Q4 FY2024 driven primarily by a positive shift in product mix. Canada medical cannabis delivered its 5th consecutive quarter of revenue growth in Q4 FY2024 with revenue increasing16% as compared to Q4 FY2023 benefiting from customer mix and larger product assortment in the Spectrum Therapeutics online store.Canada cannabis segment revenue in Q4 FY2024 increased4% as compared to Q4 FY2023 to$37 - International markets cannabis net revenue in Q4 FY2024 increased
32% as compared to Q4 FY2023 to$12 Germany andPoland as well as the timing of revenue from the US CBD business which is non-recurring. International markets cannabis Gross Margins improved by 5000 bps to54% in Q4 FY2024 driven primarily by change in geographic mix and impact from non-recurring revenue from the US CBD business. - Consolidated Gross Margins in Q4 FY2024 improved to
21% due to cost reduction activities, as well as lower excess and obsolete inventory charges inCanada cannabis. Q4 FY2024 Canada Gross Margins, however, were negatively impacted by lower cultivation yields partly due to seasonality, and an associated reduction in manufacturing utilization, which are expected to improve in FY2025. - Selling, general & administrative ("SG&A") expenses in Q4 FY2024 declined
23% as compared to Q4 FY2023 primarily due to cost reduction programs undertaken to date. - Cash outflow from operations improved
77% in Q4 FY2024 as compared to Q4 FY2023 driven by cost reduction programs and reduction in interest payments. - Operating loss from continuing operations of
$107 80% as compared to Q4 FY2023. Adjusted EBITDA loss was$15 63% improvement as compared to Q4 FY2023.
Canada cannabis segment Gross Margins improved to16% in FY2024 driven by lower excess and obsolete inventory charges and lower operating costs.- SG&A expenses declined by
33% compared to FY2023 primarily driven by cost reductions actions executed in the first half of FY2024. - When adjusted for the sale of the Canadian retail business divested in Q3 FY2023,
Canada cannabis segment revenue increased by2% year-over-year to$154 Canada medical cannabis net revenue. Canada medical cannabis net revenue increased10% year-over-year to$61 - International markets cannabis FY2024 net revenue increased
6% year-over-year to$41 40% primarily due to a positive shift in geographic mix.
Focus on innovation and increased distribution is driving growth in the Canadian cannabis market
- Larger assortment of higher margin cannabis products on Spectrum Therapeutic online store is contributing to growth in
Canada medical sales. - In Q4 FY2024, the Company launched new SKUs including new Tweed Lemon Meringue Pie flower in large format 28g packs, and 7ACRES Jack Haze Pre-rolled Joints ("PRJ") in a 0.5g x 14 large pack. Exclusive for medical cannabis customers in
Canada , extended the Spectrum Reserve collection with Alien Breath and (GG#4 x Mendo Breath) PRJ in a 0.5g x 10 large pack. - The Company added over 2,300 points of distribution ("PODs") in the Canadian adult-use market in Q4 FY2024 including 915 PODs for Tweed flower, over 700 PODs for PRJ and over 650 PODs for Deep Space beverages.
Multiple drivers of growth in International Markets medical cannabis
- Benefiting from increasing supply of high-quality cannabis from
Canada , the Company obtained the top 4 market share in the German medical cannabis market in FY20246. - Proven Canadian flower strains including Tweed Kush Mintz and Tweed Tiger Cake, launched in Q3 FY2024, accounted for over
25% of net revenue in Q4 FY2024.
Continued demand for new Venty vaporizer driving strong growth in Storz & Bickel net revenue
- Significant growth in Storz & Bickel Q4 FY2024 net revenue driven in part by continuing strong demand for the new Venty portable vaporizer.
- Strong distributor and retailer load-in of all Storz & Bickel devices in Q4 FY2024 experienced in advance of 4/20 events and sales promotions.
Canopy
- Subsequent to quarter end, shareholders of the Company overwhelmingly approved the creation of a new class of non-voting and non-participating exchangeable shares in the capital of the Company ("Exchangeable Shares") at the special meeting of shareholders held on April 12, 2024.
- Subsequent to quarter end, on April 18, 2024, Canopy Growth announced that Constellation Brands Inc. converted its Common Shares to Exchangeable Shares of the Company.
- Subsequent to quarter end, on May 6, 2024, Canopy
USA initiated the acquisitions of Mountain High Products, LLC, Wana Wellness, LLC and The Cima Group, LLC (collectively, "Wana") and Lemurian, Inc. ("Jetty"). These acquisitions are expected to close in the first half of FY2025.
Revenue by Channel
(in millions of Canadian dollars, unaudited) | Q4 FY2024 | Q4 FY2023 | Vs. | FY2024 | FY2023 | Vs. FY2023 | |
Canadian adult-use cannabis | |||||||
Business-to-business8 | (4 %) | (3 %) | |||||
Business-to-consumer | $- | $- | 0 % | $- | (100 %) | ||
(4 %) | (30 %) | ||||||
16 % | 10 % | ||||||
4 % | (18 %) | ||||||
International markets cannabis10 | 32 % | 6 % | |||||
Storz & Bickel | 43 % | 9 % | |||||
This Works | $- | (100 %) | (18 %) | ||||
Other | (32 %) | (38 %) | |||||
Net revenue | 7 % | (11 %) |
The Q4 FY2024, Q4 FY2023, FY2024 and FY2023 financial results presented in this press release have been prepared in accordance with
_____________________ |
1 Considering debt-related transactions completed subsequent to the end of FY2024 |
The Company will host a conference call and audio webcast with David Klein, CEO and Judy Hong, CFO at 10:00 AM Eastern Time on May 30, 2024.
Webcast Information
A live audio webcast will be available at https://app.webinar.net/qa1JRpmzw04.
Replay Information
A replay will be accessible by webcast until 11:59 PM Eastern Time on August 28, 2024 at https://app.webinar.net/qa1JRpmzw04.
Adjusted EBITDA is a non-GAAP measure used by management that is not defined by
Free Cash Flow is a non- GAAP measure used by management that is not defined by
Adjusted Gross Margin and Adjusted Gross Margin Percentage are non-GAAP measures used by management that are not defined by
Canopy Growth is a world leading cannabis company dedicated to unleashing the power of cannabis to improve lives.
Through an unwavering commitment to our consumers, Canopy Growth delivers innovative products with a focus on premium and mainstream cannabis brands including Doja, 7ACRES, Tweed, and Deep Space. Canopy Growth's CPG portfolio features gourmet wellness products by Martha Stewart CBD, and category defining vaporizer technology made in
Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the
Beyond its world-class products, Canopy Growth is leading the industry forward through a commitment to social equity, responsible use, and community reinvestment – pioneering a future where cannabis is understood and welcomed for its potential to help achieve greater well-being and life enhancement.
For more information visit www.canopygrowth.com.
This press release contains "forward-looking statements" within the meaning of applicable securities laws, which involve certain known and unknown risks and uncertainties. To the extent any forward-looking statements in this news release constitutes "financial outlooks" within the meaning of applicable Canadian securities laws, the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies and the performance of our investments. These forward-looking statements are generally identified by their use of such terms and phrases as "intend," "goal," "strategy," "estimate," "expect," "project," "projections," "forecasts," "plans," "seeks," "anticipates," "potential," "proposed," "will," "should," "could," "would," "may," "likely," "designed to," "foreseeable future," "believe," "scheduled" and other similar expressions. Our actual results or outcomes may differ materially from those anticipated. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
Forward-looking statements include, but are not limited to, statements with respect to:
- laws and regulations and any amendments thereto applicable to our business and the impact thereof, including uncertainty regarding the application of
U.S. state and federal law to hemp (including CBD) products and the scope of any regulations by theU.S. Food and Drug Administration, theU.S. Drug Enforcement Administration, theU.S. Federal Trade Commission, theU.S. Patent and Trademark Office, theU.S. Department of Agriculture (the "USDA") and any state equivalent regulatory agencies over hemp (including CBD) products; - expectations regarding the amount or frequency of impairment losses, including as a result of the write-down of intangible assets, including goodwill;
- our ability to refinance debt as and when required on terms favorable to us and comply with covenants contained in our debt facilities and debt instruments;
- the impacts of the Company's strategy to accelerate entry into the
U.S. cannabis market through the creation of CanopyUSA , LLC ("CanopyUSA "), including the costs and benefits associated with the amendments made to the CanopyUSA structure to facilitate the deconsolidation of the financial results of CanopyUSA within the Company's financial statements; - expectations for Canopy
USA to capitalize on the opportunity for growth inthe United States cannabis sector and the anticipated benefits of such strategy; - the timing and outcome of the floating share arrangement, whereby, subject to the terms and conditions of a Floating Share Arrangement Agreement (the "Floating Share Arrangement Agreement"), Canopy
USA is expected to acquire all of the issued and outstanding Class D subordinate voting shares (the "Floating Shares") of Acreage by way of a court-approved plan on arrangement under the Business Corporations Act (British Columbia ) (the "Floating Share Arrangement") in exchange for 0.045 of a Company common share for each Floating Share held, the anticipated benefits of the Floating Share Arrangement, the anticipated timing of the acquisition of the Class E subordinate voting shares (the "Fixed Shares") of Acreage and the Floating Shares by CanopyUSA , the satisfaction or waiver of the closing conditions set out in the Floating Share Arrangement Agreement and the arrangement agreement dated April 18, 2019, as amended on May 15, 2019, September 23, 2020 and November 17, 2020 (the "Existing Acreage Arrangement Agreement"), including receipt of all regulatory approvals, and the anticipated timing and occurrence of the exercise of the option to acquire the Fixed Shares (the "Acreage Option") and closing of such transaction; - the Amended Acreage Arrangement (as defined below) and the Floating Share Arrangement , including the occurrence or waiver (at the Company's discretion) of the occurrence or waiver (at the Company's discretion) of changes in
U.S. federal law to permit the general cultivation, distribution, and possession of marijuana, or to remove the regulation of such activities from the federal laws ofthe United States (the "Triggering Event"), and the satisfaction or waiver of the conditions to closing the acquisition of Acreage; - expectations regarding the option purchased by an affiliate of the Company for
C ($38.0 million US ) (the "Option Premium") to purchase certain of Acreage's debt, including the ability to, and timing of, the exercise of such option;$28.5 million - the transactions contemplated by the our agreement to acquire Wana , including the occurrence or waiver (at Canopy
USA 's discretion) of the Triggering Event; - the issuance of additional common shares of the Company (each whole share, a "Canopy Share" or a "Share") to satisfy the payments to eligible participants to the existing tax receivable bonus plans of High Street Capital Partners, LLC, a subsidiary of Acreage, to satisfy any deferred and/or option exercise payments to the shareholders of Wana and Jetty and the issuance of additional non-voting Shares issuable to Canopy Growth from Canopy
USA in consideration thereof; - the acquisition of additional Class A shares of Canopy
USA in connection with the investment in CanopyUSA by the Huneeus 2017 Irrevocable Trust (the "Trust") in the aggregate amount of up toUS (the "Trust Transaction"), including any warrants of Canopy$20 million USA issued to the Trust in accordance with the share purchase agreement entered into by the Trust and CanopyUSA ; - expectations regarding the laws and regulations and any amendments thereto relating to the hemp industry in the
U.S. , including the promulgation of regulations for the hemp industry by the USDA and relevant state regulatory authorities; - expectations regarding the potential success of, and the costs and benefits associated with, our acquisitions, joint ventures, strategic alliances, equity investments and dispositions;
- the grant, renewal and impact of any license or supplemental license to conduct activities with cannabis or any amendments thereof;
- our international activities and joint venture interests, including required regulatory approvals and licensing, anticipated costs and timing, and expected impact;
- our ability to successfully create and launch brands and further create, launch and scale cannabis-based products and hemp-derived consumer products in jurisdictions where such products are legal and that we currently operate in;
- the benefits, viability, safety, efficacy, dosing and social acceptance of cannabis, including CBD and other cannabinoids;
- our ability to maintain effective internal control over financial reporting;
- our ability to continue as a going concern;
- expectations regarding the use of proceeds of equity financings;
- the legalization of the use of cannabis for medical or adult-use in jurisdictions outside of
Canada , the related timing and impact thereof and our intentions to participate in such markets, if and when such use is legalized; - our ability to execute on our strategy and the anticipated benefits of such strategy;
- the ongoing impact of the legalization of additional cannabis product types and forms for adult-use in
Canada , including federal, provincial, territorial and municipal regulations pertaining thereto, the related timing and impact thereof and our intentions to participate in such markets; - the ongoing impact of developing provincial, territorial and municipal regulations pertaining to the sale and distribution of cannabis, the related timing and impact thereof, as well as the restrictions on federally regulated cannabis producers participating in certain retail markets and our intentions to participate in such markets to the extent permissible;
- the timing and nature of legislative changes in the
U.S. regarding the regulation of cannabis including tetrahydrocannabinol ; - the future performance of our business and operations;
- our competitive advantages and business strategies;
- the competitive conditions of the industry;
- the expected growth in the number of customers using our products;
- our ability or plans to identify, develop, commercialize or expand our technology and research and development initiatives in cannabinoids, or the success thereof;
- expectations regarding revenues, expenses and anticipated cash needs;
- expectations regarding cash flow, liquidity and sources of funding;
- expectations regarding capital expenditures;
- the expansion of our production and manufacturing, the costs and timing associated therewith and the receipt of applicable production and sale licenses;
- expectations with respect to our growing, production and supply chain capacities;
- expectations regarding the resolution of litigation and other legal and regulatory proceedings, reviews and investigations;
- expectations with respect to future production costs;
- expectations with respect to future sales and distribution channels and networks;
- the expected methods to be used to distribute and sell our products;
- our future product offerings;
- the anticipated future gross margins of our operations;
- accounting standards and estimates;
- expectations regarding our distribution network;
- expectations regarding the costs and benefits associated with our contracts and agreements with third parties, including under our third-party supply and manufacturing agreements;
- our ability to comply with the listing requirements of the Nasdaq Stock Market LLC and the Toronto Stock Exchange ; and
- expectations on price changes in cannabis markets.
Certain of the forward-looking statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research, industry analysis and on assumptions based on data and knowledge of these industries, which we believe to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. The industries in which we conduct our business involve risks and uncertainties that are subject to change based on various factors, which are described further below.
The forward-looking statements contained herein are based upon certain material assumptions , including: (i) management's perceptions of historical trends, current conditions and expected future developments; (ii) our ability to generate cash flow from operations; (iii) general economic, financial market, regulatory and political conditions in which we operate; (iv) the production and manufacturing capabilities and output from our facilities and our joint ventures, strategic alliances and equity investments; (v) consumer interest in our products; (vi) competition; (vii) anticipated and unanticipated costs; (viii) government regulation of our activities and products including but not limited to the areas of taxation and environmental protection; (ix) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses; * our ability to obtain qualified staff, equipment and services in a timely and cost-efficient manner; (xi) our ability to conduct operations in a safe, efficient and effective manner; (xii) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our recent acquisitions into our existing operations; and (xiii) other considerations that management believes to be appropriate in the circumstances. While our management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. Financial outlooks, as with forward-looking statements generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. Our actual financial position and results of operations may differ materially from management's current expectations.
By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking statements in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf. Such factors include, without limitation, our limited operating history; our ability to continue as a going concern; risks that we may be required to write down intangible assets, including goodwill, due to impairment; the adequacy of our capital resources and liquidity, including but not limited to, availability of sufficient cash flow to execute our business plan (either within the expected timeframe or at all); our ability to maintain an effective system of internal control; the diversion of management time on matters related to Canopy
Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management's current expectations and plans relating to the future, and the reader is cautioned that the forward-looking statements may not be appropriate for any other purpose. While we believe that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements are made as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking statements, except as required by law. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.
CANOPY GROWTH CORPORATION | ||||||||
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands of Canadian dollars, except number of shares and per share data, unaudited) | ||||||||
March 31, | March 31, | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 170,300 | $ | 667,693 | ||||
Short-term investments | 33,161 | 105,526 | ||||||
Restricted short-term investments | 7,310 | 11,765 | ||||||
Amounts receivable, net | 51,847 | 68,459 | ||||||
Inventory | 77,292 | 83,230 | ||||||
Assets of discontinued operations | 8,038 | 116,291 | ||||||
Prepaid expenses and other assets | 23,232 | 24,290 | ||||||
Total current assets | 371,180 | 1,077,254 | ||||||
Other financial assets | 437,629 | 568,292 | ||||||
Property, plant and equipment | 320,103 | 471,271 | ||||||
Intangible assets | 104,053 | 160,750 | ||||||
Goodwill | 43,239 | 85,563 | ||||||
Noncurrent assets of discontinued operations | - | 56,569 | ||||||
Other assets | 24,126 | 19,996 | ||||||
Total assets | $ | 1,300,330 | $ | 2,439,695 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 28,673 | $ | 31,835 | ||||
Other accrued expenses and liabilities | 54,039 | 53,743 | ||||||
Current portion of long-term debt | 103,935 | 556,890 | ||||||
Liabilities of discontinued operations | - | 67,624 | ||||||
Other liabilities | 48,068 | 93,750 | ||||||
Total current liabilities | 234,715 | 803,842 | ||||||
Long-term debt | 493,294 | 749,991 | ||||||
Noncurrent liabilities of discontinued operations | - | 3,417 | ||||||
Other liabilities | 71,814 | 122,423 | ||||||
Total liabilities | 799,823 | 1,679,673 | ||||||
Commitments and contingencies | ||||||||
Canopy Growth Corporation shareholders' equity: | ||||||||
Common shares - $nil par value; Authorized - unlimited number of shares; | 8,244,301 | 7,938,571 | ||||||
Additional paid-in capital | 2,602,148 | 2,506,485 | ||||||
Accumulated other comprehensive loss | (16,051 | ) | (13,860 | ) | ||||
Deficit | (10,330,030 | ) | (9,672,761 | ) | ||||
Total Canopy Growth Corporation shareholders' equity | 500,368 | 758,435 | ||||||
Noncontrolling interests | 139 | 1,587 | ||||||
Total shareholders' equity | 500,507 | 760,022 | ||||||
Total liabilities and shareholders' equity | $ | 1,300,330 | $ | 2,439,695 | ||||
1 Prior year share amounts have been retrospectively adjusted to reflect the Share Consolidation (as defined in the FY2024 Form 10-K), which became effective on December 15, 2023. |
CANOPY GROWTH CORPORATION | ||||||||||||||||
Three months ended March 31, | Years ended March 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenue | $ | 83,153 | $ | 78,853 | $ | 343,934 | $ | 381,250 | ||||||||
Excise taxes | 10,365 | 10,618 | 46,788 | 47,997 | ||||||||||||
Net revenue | 72,788 | 68,235 | 297,146 | 333,253 | ||||||||||||
Cost of goods sold | 57,320 | 132,556 | 216,264 | 396,782 | ||||||||||||
Gross margin | 15,468 | (64,321) | 80,882 | (63,529) | ||||||||||||
Operating expenses | ||||||||||||||||
Selling, general and administrative expenses | 54,619 | 71,092 | 229,429 | 342,517 | ||||||||||||
Share-based compensation | 4,053 | 4,429 | 14,180 | 25,322 | ||||||||||||
Loss on asset impairment and restructuring | 63,535 | 404,934 | 65,987 | 2,199,146 | ||||||||||||
Total operating expenses | 122,207 | 480,455 | 309,596 | 2,566,985 | ||||||||||||
Operating loss from continuing operations | (106,739) | (544,776) | (228,714) | (2,630,514) | ||||||||||||
Other income (expense), net | 10,629 | (59,570) | (242,641) | (455,644) | ||||||||||||
Loss from continuing operations before income taxes | (96,110) | (604,346) | (471,355) | (3,086,158) | ||||||||||||
Income tax (expense) recovery | 1,435 | 16,361 | (12,327) | 5,728 | ||||||||||||
Net loss from continuing operations | (94,675) | (587,985) | (483,682) | (3,080,430) | ||||||||||||
Net income (loss) from discontinued operations, net of | 2,338 | (59,624) | (192,113) | (229,116) | ||||||||||||
Net loss | (92,337) | (647,609) | (675,795) | (3,309,546) | ||||||||||||
Net loss from continuing operations attributable to | - | (561) | - | (1,897) | ||||||||||||
Net loss from discontinued operations attributable to | - | (6,968) | (18,526) | (29,491) | ||||||||||||
Net loss attributable to Canopy Growth Corporation | $ | (92,337) | $ | (640,080) | $ | (657,269) | $ | (3,278,158) | ||||||||
Basic and diluted loss per share1 | ||||||||||||||||
Continuing operations | $ | (1.06) | $ | (11.78) | $ | (6.47) | $ | (66.39) | ||||||||
Discontinued operations | 0.03 | (1.05) | (2.32) | (4.30) | ||||||||||||
Basic and diluted loss per share | $ | (1.03) | $ | (12.83) | $ | (8.79) | $ | (70.69) | ||||||||
Basic and diluted weighted average common shares | 89,500,859 | 49,877,806 | 74,787,521 | 46,372,441 | ||||||||||||
1 Prior year share amounts have been retrospectively adjusted to reflect the Share Consolidation (as defined in the FY2024 Form 10-K), which became effective on December 15, 2023. |
Schedule 3
CANOPY GROWTH CORPORATION | ||||||||
Years ended March 31, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (675,795) | $ | (3,309,546) | ||||
Loss from discontinued operations, net of income tax | (192,113) | (229,116) | ||||||
Net loss from continuing operations | (483,682) | (3,080,430) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation of property, plant and equipment | 28,376 | 55,575 | ||||||
Amortization of intangible assets | 24,800 | 24,458 | ||||||
Share-based compensation | 14,180 | 25,322 | ||||||
Loss on asset impairment and restructuring | 53,797 | 2,170,588 | ||||||
Income tax expense (recovery) | 12,327 | (5,728) | ||||||
Non-cash fair value adjustments and charges related to | 160,468 | 353,827 | ||||||
Change in operating assets and liabilities, net of effects from | ||||||||
Amounts receivable | (3,749) | 6,242 | ||||||
Inventory | 1,034 | 68,438 | ||||||
Prepaid expenses and other assets | (2,433) | 12,530 | ||||||
Accounts payable and other accrued expenses and accrued liabilities | 9,115 | (28,240) | ||||||
Other, including non-cash foreign currency | (42,654) | 2,995 | ||||||
Net cash used in operating activities - continuing operations | (228,421) | (394,423) | ||||||
Net cash used in operating activities - discontinued operations | (53,529) | (163,123) | ||||||
Net cash used in operating activities | (281,950) | (557,546) | ||||||
Cash flows from investing activities: | ||||||||
Purchases of and deposits on property, plant and equipment | (3,449) | (9,114) | ||||||
Purchases of intangible assets | (547) | (1,337) | ||||||
Proceeds on sale of property, plant and equipment | 154,052 | 13,609 | ||||||
Redemption of short-term investments | 78,549 | 502,589 | ||||||
Net cash (outflow) proceeds on sale of subsidiaries | (955) | 14,932 | ||||||
Investment in other financial assets | (347) | (67,150) | ||||||
Other investing activities | (7,705) | 3,900 | ||||||
Net cash provided by investing activities - continuing operations | 219,598 | 457,429 | ||||||
Net cash provided by (used in) investing activities - discontinued operations | 21,992 | (24,050) | ||||||
Net cash provided by investing activities | 241,590 | 433,379 | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common shares and warrants | 81,063 | 1,049 | ||||||
Proceeds from exercise of stock options | - | 281 | ||||||
Issuance of long-term debt and convertible debentures | - | 135,160 | ||||||
Repayment of long-term debt | (509,779) | (118,179) | ||||||
Other financing activities | (36,339) | (38,005) | ||||||
Net cash used in financing activities | (465,055) | (19,694) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,292) | 44,863 | ||||||
Net decrease in cash and cash equivalents | (506,707) | (98,998) | ||||||
Cash and cash equivalents, beginning of period1 | 677,007 | 776,005 | ||||||
Cash and cash equivalents, end of period2 | $ | 170,300 | $ | 677,007 | ||||
1 Includes cash of our discontinued operations of | ||||||||
2 Includes cash of our discontinued operations of $nil and | ||||||||
Adjusted Gross Margin1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended March 31, | ||||||||
(in thousands of Canadian dollars except where indicated; unaudited) | 2024 | 2023 | ||||||
Net revenue | $ | 72,788 | $ | 68,235 | ||||
Gross margin, as reported | 15,468 | (64,321) | ||||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | (297) | 71,673 | ||||||
Adjusted gross margin1 | $ | 15,171 | $ | 7,352 | ||||
Adjusted gross margin percentage1 | 21 | % | 11 | % | ||||
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures. See "Non-GAAP Measures". | ||||||||
Years ended March 31, | ||||||||
(in thousands of Canadian dollars except where indicated; unaudited) | 2024 | 2023 | ||||||
Net revenue | $ | 297,146 | $ | 333,253 | ||||
Gross margin, as reported | 80,882 | (63,529) | ||||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | (986) | 81,802 | ||||||
Adjusted gross margin1 | $ | 79,896 | $ | 18,273 | ||||
Adjusted gross margin percentage1 | 27 | % | 5 | % | ||||
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures. See "Non-GAAP Measures". | ||||||||
Adjusted EBITDA1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended March 31, | ||||||||
(in thousands of Canadian dollars, unaudited) | 2024 | 2023 | ||||||
Net loss from continuing operations | $ | (94,675) | $ | (587,985) | ||||
Income tax recovery | (1,435) | (16,361) | ||||||
Other (income) expense, net | (10,629) | 59,570 | ||||||
Share-based compensation | 4,053 | 4,429 | ||||||
Acquisition, divestiture, and other costs | 13,062 | 4,038 | ||||||
Depreciation and amortization2 | 11,295 | 19,301 | ||||||
Loss on asset impairment and restructuring | 63,535 | 404,934 | ||||||
Restructuring costs recorded in cost of goods sold | (297) | 71,673 | ||||||
Adjusted EBITDA1 | $ | (15,091) | $ | (40,401) | ||||
1Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures". | ||||||||
2 From Consolidated Statements of Cash Flows. | ||||||||
Years ended March 31, | ||||||||
(in thousands of Canadian dollars, unaudited) | 2024 | 2023 | ||||||
Net loss from continuing operations | $ | (483,682) | $ | (3,080,430) | ||||
Income tax expense (recovery) | 12,327 | (5,728) | ||||||
Other (income) expense, net | 242,641 | 455,644 | ||||||
Share-based compensation | 14,180 | 25,322 | ||||||
Acquisition, divestiture, and other costs | 37,435 | 35,584 | ||||||
Depreciation and amortization2 | 53,176 | 80,033 | ||||||
Loss on asset impairment and restructuring | 65,987 | 2,199,146 | ||||||
Restructuring costs recorded in cost of goods sold | (986) | 81,802 | ||||||
Adjusted EBITDA1 | $ | (58,922) | $ | (208,627) | ||||
1Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures". | ||||||||
2 From Consolidated Statements of Cash Flows. | ||||||||
Free Cash Flow1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended March 31, | ||||||||
(in thousands of Canadian dollars, unaudited) | 2024 | 2023 | ||||||
Net cash used in operating activities - continuing operations | (22,460) | (95,633) | ||||||
Purchases of and deposits on property, plant and equipment | (249) | (2,938) | ||||||
Free cash flow - continuing operations1 | (22,709) | (98,571) | ||||||
1Free cash flow is a non-GAAP measure. See "Non-GAAP Measures". | ||||||||
Years ended March 31, | ||||||||
(in thousands of Canadian dollars, unaudited) | 2024 | 2023 | ||||||
Net cash used in operating activities - continuing operations | (228,421) | (394,423) | ||||||
Purchases of and deposits on property, plant and equipment | (3,449) | (9,114) | ||||||
Free cash flow - continuing operations1 | (231,870) | (403,537) | ||||||
1Free cash flow is a non-GAAP measure. See "Non-GAAP Measures". | ||||||||
Segmented Gross Margin and Segmented Adjusted Gross Margin1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended March 31, | ||||||||
(in thousands of Canadian dollars except where indicated; unaudited) | 2024 | 2023 | ||||||
Net revenue | $ | 37,082 | $ | 35,731 | ||||
Gross margin, as reported | 157 | (69,826) | ||||||
Gross margin percentage, as reported | 0 | % | (195) | % | ||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | - | 69,589 | ||||||
Adjusted gross margin1 | $ | 157 | $ | (237) | ||||
Adjusted gross margin percentage1 | 0 | % | (1) | % | ||||
International markets cannabis segment | ||||||||
Revenue | $ | 11,646 | $ | 8,770 | ||||
Gross margin, as reported | 6,318 | 354 | ||||||
Gross margin percentage, as reported | 54 | % | 4 | % | ||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | (297) | 938 | ||||||
Adjusted gross margin1 | $ | 6,021 | $ | 1,292 | ||||
Adjusted gross margin percentage1 | 52 | % | 15 | % | ||||
Storz & Bickel segment | ||||||||
Revenue | $ | 22,153 | $ | 15,494 | ||||
Gross margin, as reported | 9,054 | 5,303 | ||||||
Gross margin percentage, as reported | 41 | % | 34 | % | ||||
Adjusted gross margin1 | $ | 9,054 | $ | 5,303 | ||||
Adjusted gross margin percentage1 | 41 | % | 34 | % | ||||
This Works segment | ||||||||
Revenue | $ | - | $ | 5,352 | ||||
Gross margin, as reported | - | 1,223 | ||||||
Gross margin percentage, as reported | 0 | % | 23 | % | ||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | - | 1,146 | ||||||
Adjusted gross margin1 | $ | - | $ | 2,369 | ||||
Adjusted gross margin percentage1 | 0 | % | 44 | % | ||||
Other | ||||||||
Revenue | $ | 1,907 | $ | 2,888 | ||||
Gross margin, as reported | (61) | (1,375) | ||||||
Gross margin percentage, as reported | (3) | % | (48) | % | ||||
Adjusted gross margin1 | $ | (61) | $ | (1,375) | ||||
Adjusted gross margin percentage1 | (3) | % | (48) | % | ||||
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures. See "Non-GAAP Measures". | ||||||||
Years ended March 31, | ||||||||
(in thousands of Canadian dollars except where indicated; unaudited) | 2024 | 2023 | ||||||
Net revenue | $ | 153,716 | $ | 187,067 | ||||
Gross margin, as reported | 24,896 | (95,291) | ||||||
Gross margin percentage, as reported | 16 | % | (51) | % | ||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | (689) | 71,278 | ||||||
Adjusted gross margin1 | $ | 24,207 | $ | (24,013) | ||||
Adjusted gross margin percentage1 | 16 | % | (13) | % | ||||
International markets cannabis segment | ||||||||
Revenue | $ | 41,312 | $ | 38,949 | ||||
Gross margin, as reported | 16,682 | (3,322) | ||||||
Gross margin percentage, as reported | 40 | % | (9) | % | ||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | (297) | 8,224 | ||||||
Adjusted gross margin1 | 16,385 | 4,902 | ||||||
Adjusted gross margin percentage1 | 40 | % | 13 | % | ||||
Storz & Bickel segment | ||||||||
Revenue | $ | 70,670 | $ | 64,845 | ||||
Gross margin, as reported | 30,128 | 26,112 | ||||||
Gross margin percentage, as reported | 43 | % | 40 | % | ||||
Adjusted gross margin1 | 30,128 | 26,112 | ||||||
Adjusted gross margin percentage1 | 43 | % | 40 | % | ||||
This Works segment | ||||||||
Revenue | $ | 21,256 | $ | 26,029 | ||||
Gross margin, as reported | 10,534 | 10,205 | ||||||
Gross margin percentage, as reported | 50 | % | 39 | % | ||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | - | 2,300 | ||||||
Adjusted gross margin1 | $ | 10,534 | $ | 12,505 | ||||
Adjusted gross margin percentage1 | 50 | % | 48 | % | ||||
Other | ||||||||
Revenue | $ | 10,192 | $ | 16,363 | ||||
Gross margin, as reported | (1,358) | (1,233) | ||||||
Gross margin percentage, as reported | (13) | % | (8) | % | ||||
Adjusted gross margin1 | $ | (1,358) | $ | (1,233) | ||||
Adjusted gross margin percentage1 | (13) | % | (8) | % | ||||
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures. See "Non-GAAP Measures". | ||||||||
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SOURCE Canopy Growth Corporation
FAQ
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