Canopy Growth Reports Second Quarter Fiscal Year 2025 Financial Results
Canopy Growth (TSX: WEED, Nasdaq: CGC) reported Q2 FY2025 financial results with mixed performance. Net revenue decreased 9% year-over-year to $63.0MM, though excluding divested businesses, it grew 3%. Storz & Bickel showed strong growth with revenue up 32% to $16MM. Medical cannabis revenue increased in both Canada (16%) and international markets (12%). The company reduced its Adjusted EBITDA loss by 54% to $6MM and improved free cash flow by 16%. Gross margin increased to 35%, up 100 basis points from last year. The cash position strengthened to $231MM, up from $195MM in the previous quarter.
Canopy Growth (TSX: WEED, Nasdaq: CGC) ha riportato i risultati finanziari del secondo trimestre dell'anno fiscale 2025 con performance miste. I ricavi netti sono diminuiti del 9% rispetto all'anno precedente, raggiungendo i 63,0 milioni di dollari, anche se escludendo le attività dismesse, sono aumentati del 3%. Storz & Bickel ha mostrato una forte crescita, con ricavi in aumento del 32%, arrivando a 16 milioni di dollari. I ricavi dalla cannabis medicinale sono aumentati sia in Canada (16%) che nei mercati internazionali (12%). L'azienda ha ridotto la sua perdita di EBITDA rettificato del 54%, portandola a 6 milioni di dollari, e ha migliorato il flusso di cassa libero del 16%. Il margine lordo è aumentato al 35%, in crescita di 100 punti base rispetto all'anno scorso. La posizione di liquidità si è rafforzata a 231 milioni di dollari, in aumento rispetto ai 195 milioni di dollari del trimestre precedente.
Canopy Growth (TSX: WEED, Nasdaq: CGC) reportó los resultados financieros del segundo trimestre del año fiscal 2025 con un desempeño mixto. Los ingresos netos disminuyeron un 9% interanual a 63,0 millones de dólares, aunque excluyendo los negocios desinvertidos, crecieron un 3%. Storz & Bickel mostró un fuerte crecimiento con ingresos que aumentaron un 32% a 16 millones de dólares. Los ingresos por cannabis medicinal aumentaron tanto en Canadá (16%) como en los mercados internacionales (12%). La compañía redujo su pérdida de EBITDA ajustado en un 54% a 6 millones de dólares y mejoró su flujo de caja libre en un 16%. El margen bruto aumentó al 35%, incrementando 100 puntos básicos con respecto al año pasado. La posición de efectivo se fortaleció a 231 millones de dólares, subiendo desde los 195 millones de dólares en el trimestre anterior.
캐노피 성장 (TSX: WEED, Nasdaq: CGC)은 2025 회계연도 2분기 재무 결과를 발표하며 혼합 성과를 보여주었습니다. 순수익은 전년 대비 9% 감소하여 6,300만 달러에 이르렀으나, 매각된 사업 부문을 제외하면 3% 증가했습니다. 스토르츠 & 비켈은 매출이 32% 증가하여 1,600만 달러에 달하며 강한 성장을 보였습니다. 의료용 대마초 매출은 캐나다(16%)와 국제 시장(12%)에서 증가했습니다. 회사는 조정된 EBITDA 손실을 54% 줄여 600만 달러로 개선하였으며, 자유 현금 흐름을 16% 향상시켰습니다. 총 마진은 35%로 증가하여 지난해보다 100 비 basis포인트 향상되었습니다. 현금 보유액은 2억 3,100만 달러로 강화되어, 이전 분기의 1억 9,500만 달러에서 증가하였습니다.
Canopy Growth (TSX: WEED, Nasdaq: CGC) a annoncé les résultats financiers du deuxième trimestre de l'exercice 2025 avec des performances mitigées. Les revenus nets ont diminué de 9 % par rapport à l'année précédente, atteignant 63,0 millions de dollars, bien qu'en excluant les activités cédées, ils aient augmenté de 3 %. Storz & Bickel a connu une forte croissance, avec des revenus en hausse de 32 % pour atteindre 16 millions de dollars. Les revenus de cannabis médical ont augmenté tant au Canada (16 %) que sur les marchés internationaux (12 %). La société a réduit sa perte d'EBITDA ajusté de 54 % à 6 millions de dollars et a amélioré son flux de trésorerie disponible de 16 %. La marge brute a augmenté à 35 %, soit une hausse de 100 points de base par rapport à l'année dernière. La position de liquidités s'est renforcée à 231 millions de dollars, contre 195 millions de dollars au trimestre précédent.
Canopy Growth (TSX: WEED, Nasdaq: CGC) hat die Finanzzahlen für das zweite Quartal des Geschäftsjahres 2025 veröffentlicht und dabei gemischte Ergebnisse erzielt. Der Nettoumsatz fiel im Vergleich zum Vorjahr um 9 % auf 63,0 Millionen US-Dollar, während er ohne die veräußerten Geschäftsbereiche um 3 % wuchs. Storz & Bickel verzeichnete ein starkes Wachstum mit einem Umsatzanstieg von 32 % auf 16 Millionen US-Dollar. Der Umsatz mit medizinischem Cannabis stieg sowohl in Kanada (16 %) als auch in internationalen Märkten (12 %). Das Unternehmen reduzierte seinen bereinigten EBITDA-Verlust um 54 % auf 6 Millionen US-Dollar und verbesserte den freien Cashflow um 16 %. Die Bruttomarge stieg auf 35 %, was 100 Basispunkten mehr als im Vorjahr entspricht. Die Liquiditätsposition stärkte sich auf 231 Millionen US-Dollar, ein Anstieg gegenüber 195 Millionen US-Dollar im vorangegangenen Quartal.
- Storz & Bickel revenue increased 32% YoY to $16MM
- Medical cannabis revenue grew 16% in Canada and 12% in international markets
- Adjusted EBITDA loss improved by 54% YoY
- Free cash flow improved by 16% YoY
- Cash position increased to $231MM from $195MM in previous quarter
- International cannabis gross margins improved 1,700 bps to 47%
- Overall net revenue declined 9% YoY to $63MM
- Operating loss increased to $46MM from $7MM in Q2 FY2024
- Canada adult-use cannabis revenue declined 24%
- Negative free cash flow of $56.4MM
- Net loss from continuing operations of $131.6MM
Insights
Canopy Growth's Q2 FY2025 results show a mixed performance with some concerning trends. The
The balance sheet shows improvement with cash position increasing to
The adult-use cannabis segment's
The strategic positioning reveals both opportunities and challenges. The Canopy USA strategy's progress, particularly the completed Wana acquisition and pending Acreage deal, positions the company for U.S. market entry. The launch of ShopWanderous.com for hemp-derived products represents a new revenue stream with national reach.
European expansion looks promising, with new supply agreements and strong growth in Poland and Germany. The
However, supply chain issues affecting Wana edibles distribution and the significant decline in adult-use cannabis revenue suggest execution challenges that need addressing. The company's focus on premium brands like Tweed and 7ACRES, along with planned product innovations, could help recover market share but faces intense competition.
Storz & Bickel net revenue increased
Continued growth across medical cannabis businesses, with net revenue increasing year-over-year by
Further improved balance sheet with early prepayment reducing senior secured term loan by US
"We delivered a solid second quarter led by strong growth across our Storz & Bickel, Canadian medical, and European cannabis businesses and we are well positioned to accelerate momentum in the second half of our fiscal year. In addition, we remain highly optimistic about the momentum building within Canopy
David Klein, Chief Executive Officer
"We've demonstrated another quarter of progress towards profitability driven by improvement in gross margins as well as a reduction in SG&A expenses. With expected improvement in top-line growth in the second half of the fiscal year and continued cost discipline, we believe we remain on a path to achieve positive Adjusted EBITDA at the consolidated level in the coming quarters."
Judy Hong, Chief Financial Officer
Second Quarter Fiscal Year 2025 Financial Summary
(in millions of Canadian | Net Revenue | Gross margin | Adjusted | Net loss from | Adjusted | Free cash | |
Reported | 35 % | 35 % | |||||
vs. Q2 FY2024 | (9 %) | 100 bps | 200 bps | 11 % | 54 % | 16 % |
- Net revenue in Q2 FY2025 decreased
9% compared to the second quarter ended September 30, 2023 ("Q2 FY2024"). Excluding net revenue from businesses divested during the prior fiscal year, net revenue increased3% . - Consolidated gross margin increased by 100 basis points ("bps") to
35% in Q2 FY2025 compared to Q2 FY2024 primarily due to the realized benefit of the Company's cost savings program as well as a shift to higher-margin medical cannabis sales. - Operating loss from continuing operations was
$46M M in Q2 FY2025, compared to a loss of$7M M in Q2 FY2024, with last year's results benefitting from the sale of a facility inSmiths Falls, Ontario . - Adjusted EBITDA loss was
$6M M in Q2 FY2025, representing a54% improvement year-over-year, driven primarily by the realized benefit of the Company's cost savings program. - Free Cash Flow was an outflow of
$56M M in Q2 FY2025, representing a16% improvement compared to Q2 FY2024, primarily driven by a reduction in cash interest expenses. - Cash and short-term investments balance increased to
$231M M at September 30, 2024, from$195M M at June 30, 2024.
1 Adjusted gross margin is a non-GAAP measure, and for Q2 FY2025 excludes $nil of restructuring costs recorded in cost of goods sold (Q2 FY2024 - excludes |
2 Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures" and Schedule 5 for a reconciliation of net loss from continuing operations to adjusted EBITDA. |
3 Free cash flow is a non-GAAP measure. See "Non-GAAP Measures" and Schedule 6 for a reconciliation of net cash used in operating activities - continuing operations to free cash flow - continuing operations. |
Canada Cannabis Highlights
Canada cannabis net revenue was$37M M in Q2 FY2025, representing a decrease of8% compared to Q2 FY2024. WhileCanada medical cannabis net revenue increased16% over Q2 FY2024,Canada adult-use cannabis declined24% in part due to an interruption in the supply of Wana edibles.- Several initiatives are expected to strengthen the Company's
Canada adult-use cannabis business in the second half of fiscal year 2025 ("2H FY2025"). These initiatives include:- The re-introduction of Wana edibles which is expected to drive growth in the edibles category, supported by investments in in-market activations.
- Continued efforts to elevate the quality and variety of our Tweed and 7ACRES flower and pre-roll joint product offerings, as well as increased commercial investments to expand distribution and improve velocity of our core brands. The Company is seeing this investment pay off with reinvigorated performance of Tweed Kush Mintz as well as promising in-market performance of new strains Tweed Cherry Acai Mints, which is now carried in all markets nationally, and 7ACRES Ultra Jack.
- A robust new product pipeline with a particular focus on the growth categories of Vape, Pre-Roll Joints and Concentrates. Over the coming weeks, the Company expects to launch an innovative infused pre-roll joint product in both adult-use and medical channels.
International Markets Highlights
- International markets net revenue was
$10M M in Q2 FY2025, representing an increase of12% over Q2 FY2024, with strong growth inPoland andGermany partially offset by a decline inAustralia . - International markets cannabis gross margins increased 1,700 bps to
47% during Q2 FY2025 compared to Q2 FY2024 primarily due to a shift in sales mix to higher-marginPoland as well as a lower overall cost structure. - Agreements that the Company has signed with multiple EU-based cultivators are expected to increase the supply of cannabis flower to fuel growth in EU medical cannabis markets over the coming quarters.
Storz & Bickel Highlights
- Storz & Bickel delivered net revenue in Q2 FY2025 of
$16M M, representing a32% increase over Q2 FY2024 driven primarily by strong growth inGermany following regulatory reform, significant improvement inU.S. sales and the sell through of the remaining inventory of the Mighty device that is being phased out. - Ongoing demand in
Germany driven by active marketing campaigns are expected to drive continued growth in the German and the broader European market. - Additional distribution gains in the
U.S. , driven by new affiliate programs as well as traditional holiday season marketing and sales initiatives are expected to benefit Storz & Bickel sales in 2H FY2025.
Canopy
- Canopy
USA , LLC ("CanopyUSA ") has completed the acquisition of Wana Brands ("Wana") with the closing of Mountain High Products, LLC subsequent to the end of Q2 FY2025, paving the way for brand integration and growth. - Wana launched the ShopWanderous.com online marketplace for hemp-derived THC and CBD products, expanding their product offering to a new national consumer base.
- Lemurian, Inc. ("Jetty") is expected to launch new solventless All-In-One vapes in
California andColorado over the coming weeks, andNew York early in calendar year 2025. - The acquisition of Acreage Holdings, Inc. ("Acreage") by Canopy
USA remains on track to close no later than the first half of calendar year 2025.
Second Quarter Fiscal 2025 Revenue Review4
(in thousands of Canadian dollars, unaudited) | Q2 FY2025 | Q2 FY2024 | Vs. Q2 FY2024 | |
Canadian adult-use cannabis5 | (24 %) | |||
16 % | ||||
(8 %) | ||||
International markets cannabis7 | 12 % | |||
Storz & Bickel | 32 % | |||
This Works | $- | (100 %) | ||
Other | $- | (100 %) | ||
Net revenue | (9 %) |
The Q2 FY2025 and Q2 FY2024 financial results presented in this press release have been prepared in accordance with
Webcast and Conference Call Information
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 Friday, November 8, 2024.
Webcast Information
A live audio webcast will be available at: https://app.webinar.net/NXnR9dNYmPl.
Replay Information
A replay will be accessible by webcast until 11:59 PM ET on February 6, 2025 at: https://app.webinar.net/NXnR9dNYmPl.
Non-GAAP Measures
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
4 In Q2 FY2025, we are reporting our financial results for the following four reportable segments: (i) |
5 For Q2 FY2025, amount is net of excise taxes of |
6 For Q2 FY2025, amount is net of excise taxes of |
7 For Q2 FY2025, amount reflects other revenue adjustments of $nil (Q2 FY2024 - |
About Canopy Growth
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, in addition to 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.
Notice Regarding Forward Looking Statements
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 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 , 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 of 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 and occurrence of closing the acquisition of the Class E subordinate voting shares (the "Fixed Shares") of Acreage pursuant to the exercise of the option to acquire the issued and outstanding Fixed Shares of Acreage Option, the anticipated timing and occurrence of the acquisition of the Floating Shares by CanopyUSA , the satisfaction or waiver of the closing conditions set out in the Floating Share Arrangement Agreement (as defined below) and the arrangement agreement dated April 18, 2019, as amended on May 15, 2019, September 23, 2020 and November 17, 2020 (the "the Existing Acreage Arrangement Agreement"), including receipt of all regulatory approvals; - the timing and occurrence of the final tranche closing in connection with the acquisition of Jetty pursuant to the exercise of the option to acquire Jetty;
- 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 and non-participating shares in the capital of Canopy
USA issuable to Canopy Growth from CanopyUSA 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 ; - the potential further extension to the maturity date of the Company's credit facility and the timing and occurrence of the optional prepayment of such credit facility in connection with the amendment to the credit agreement;
- expectations regarding the potential success of, and the costs and benefits associated with, our acquisitions, 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, 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, state, 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, 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.
Schedule 1
CANOPY GROWTH CORPORATION | ||||||||
September 30, | March 31, | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 228,416 | $ | 170,300 | ||||
Short-term investments | 2,805 | 33,161 | ||||||
Restricted short-term investments | 7,490 | 7,310 | ||||||
Amounts receivable, net | 41,860 | 51,847 | ||||||
Inventory | 90,094 | 77,292 | ||||||
Assets of discontinued operations | - | 8,038 | ||||||
Prepaid expenses and other assets | 21,000 | 23,232 | ||||||
Total current assets | 391,665 | 371,180 | ||||||
Equity method investments | 136,377 | - | ||||||
Other financial assets | 242,145 | 437,629 | ||||||
Property, plant and equipment | 303,165 | 320,103 | ||||||
Intangible assets | 95,386 | 104,053 | ||||||
Goodwill | 44,531 | 43,239 | ||||||
Other assets | 19,079 | 24,126 | ||||||
Total assets | $ | 1,232,348 | $ | 1,300,330 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 18,364 | $ | 28,673 | ||||
Other accrued expenses and liabilities | 42,736 | 54,039 | ||||||
Current portion of long-term debt | 137,918 | 103,935 | ||||||
Other liabilities | 82,266 | 48,068 | ||||||
Total current liabilities | 281,284 | 234,715 | ||||||
Long-term debt | 415,932 | 493,294 | ||||||
Other liabilities | 25,464 | 71,814 | ||||||
Total liabilities | 722,680 | 799,823 | ||||||
Commitments and contingencies | ||||||||
Canopy Growth Corporation shareholders' equity: | ||||||||
Share capital | 8,490,670 | 8,244,301 | ||||||
Additional paid-in capital | 2,620,491 | 2,602,148 | ||||||
Accumulated other comprehensive loss | (16,032) | (16,051) | ||||||
Deficit | (10,585,461) | (10,330,030) | ||||||
Total Canopy Growth Corporation shareholders' equity | 509,668 | 500,368 | ||||||
Noncontrolling interests | - | 139 | ||||||
Total shareholders' equity | 509,668 | 500,507 | ||||||
Total liabilities and shareholders' equity | $ | 1,232,348 | $ | 1,300,330 |
Schedule 2
CANOPY GROWTH CORPORATION | ||||||||
Three months ended September 30, | ||||||||
2024 | 2023 | |||||||
Revenue | $ | 73,958 | $ | 82,076 | ||||
Excise taxes | 10,967 | 12,481 | ||||||
Net revenue | 62,991 | 69,595 | ||||||
Cost of goods sold | 41,153 | 46,169 | ||||||
Gross margin | 21,838 | 23,426 | ||||||
Operating expenses | ||||||||
Selling, general and administrative expenses | 41,730 | 57,611 | ||||||
Share-based compensation | 5,221 | 2,717 | ||||||
Loss (gain) on asset impairment and restructuring | 20,830 | (29,895) | ||||||
Total operating expenses | 67,781 | 30,433 | ||||||
Operating loss from continuing operations | (45,943) | (7,007) | ||||||
Other income (expense), net | (85,305) | (128,334) | ||||||
Loss from continuing operations before income taxes | (131,248) | (135,341) | ||||||
Income tax expense | (302) | (12,821) | ||||||
Net loss from continuing operations | (131,550) | (148,162) | ||||||
Discontinued operations, net of income tax | 3,257 | (176,638) | ||||||
Net loss | (128,293) | (324,800) | ||||||
Discontinued operations attributable to noncontrolling | - | (14,786) | ||||||
Net loss attributable to Canopy Growth Corporation | $ | (128,293) | $ | (310,014) | ||||
Basic and diluted loss per share1 | ||||||||
Continuing operations | $ | (1.52) | $ | (2.07) | ||||
Discontinued operations | 0.04 | (2.26) | ||||||
Basic and diluted loss per share | $ | (1.48) | $ | (4.33) | ||||
Basic and diluted weighted average common shares | 86,827,991 | 71,629,443 |
1 Prior year share and per share amounts have been retrospectively adjusted to reflect the Share Consolidation, which became effective on December 15, 2023. |
Schedule 3
CANOPY GROWTH CORPORATION | ||||||||
Six months ended September 30, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (255,431) | $ | (366,661) | ||||
Gain (loss) from discontinued operations, net of income tax | 5,310 | (207,930) | ||||||
Net loss from continuing operations | (260,741) | (158,731) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation of property, plant and equipment | 10,628 | 16,568 | ||||||
Amortization of intangible assets | 10,709 | 13,073 | ||||||
Share-based compensation | 9,372 | 6,434 | ||||||
Loss (gain) on asset impairment and restructuring | 18,768 | (25,986) | ||||||
Income tax expense | 6,496 | 14,839 | ||||||
Non-cash fair value adjustments and charges related to | 147,290 | 44,438 | ||||||
Change in operating assets and liabilities, net of effects from | ||||||||
Amounts receivable | 3,892 | (12,903) | ||||||
Inventory | (11,972) | (4,240) | ||||||
Prepaid expenses and other assets | (5,643) | (250) | ||||||
Accounts payable and accrued liabilities | (22,000) | (13,038) | ||||||
Other, including non-cash foreign currency | (12,431) | (52,817) | ||||||
Net cash used in operating activities - continuing operations | (105,632) | (172,613) | ||||||
Net cash used in operating activities - discontinued operations | - | (54,709) | ||||||
Net cash used in operating activities | (105,632) | (227,322) | ||||||
Cash flows from investing activities: | ||||||||
Purchases of and deposits on property, plant and equipment | (6,509) | (2,636) | ||||||
Purchases of intangible assets | (14) | (803) | ||||||
Proceeds on sale of property, plant and equipment | 4,932 | 152,417 | ||||||
Redemption of short-term investments | 30,184 | 81,015 | ||||||
Net cash outflow on sale or deconsolidation of subsidiaries | (6,968) | - | ||||||
Net cash inflow on loan receivable | 28,303 | 831 | ||||||
Investment in other financial assets | (95,335) | (472) | ||||||
Other investing activities | - | (10,513) | ||||||
Net cash (used in) provided by investing activities - continuing operations | (45,407) | 219,839 | ||||||
Net cash provided by (used in) investing activities - discontinued operations | 13,414 | (17,122) | ||||||
Net cash (used in) provided by investing activities | (31,993) | 202,717 | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common shares and warrants | 138,476 | 33,795 | ||||||
Proceeds from exercise of stock options | 112 | - | ||||||
Proceeds from exercise of warrants | 8,454 | - | ||||||
Issuance of long-term debt and convertible debentures | 68,255 | - | ||||||
Repayment of long-term debt | (13,484) | (415,185) | ||||||
Other financing activities | (7,096) | (25,908) | ||||||
Net cash provided by (used in) financing activities | 194,717 | (407,298) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 1,024 | (2,129) | ||||||
Net increase (decrease) in cash and cash equivalents | 58,116 | (434,032) | ||||||
Cash and cash equivalents, beginning of period1 | 170,300 | 677,007 | ||||||
Cash and cash equivalents, end of period2 | $ | 228,416 | $ | 242,975 | ||||
1 Includes cash of our discontinued operations of $nil and | ||||||||
2 Includes cash of our discontinued operations of $nil and |
Schedule 4
Adjusted Gross Margin1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended September 30, | ||||||||
(in thousands of Canadian dollars except where indicated; unaudited) | 2024 | 2023 | ||||||
Net revenue | $ | 62,991 | $ | 69,595 | ||||
Gross margin, as reported | 21,838 | 23,426 | ||||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | - | (689) | ||||||
Adjusted gross margin1 | $ | 21,838 | $ | 22,737 | ||||
Adjusted gross margin percentage1 | 35 | % | 33 | % | ||||
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures. See "Non-GAAP Measures". |
Schedule 5
Adjusted EBITDA1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended September 30, | ||||||||
(in thousands of Canadian dollars, unaudited) | 2024 | 2023 | ||||||
Net loss from continuing operations | $ | (131,550) | $ | (148,162) | ||||
Income tax expense | 302 | 12,821 | ||||||
Other (income) expense, net | 85,305 | 128,334 | ||||||
Share-based compensation | 5,221 | 2,717 | ||||||
Acquisition, divestiture, and other costs | 4,078 | 10,488 | ||||||
Depreciation and amortization | 10,307 | 12,530 | ||||||
Loss (gain) on asset impairment and restructuring | 20,830 | (29,895) | ||||||
Restructuring costs recorded in cost of goods sold | - | (689) | ||||||
Adjusted EBITDA1 | $ | (5,507) | $ | (11,856) | ||||
1Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures". |
Schedule 6
Free Cash Flow1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended September 30, | ||||||||
(in thousands of Canadian dollars, unaudited) | 2024 | 2023 | ||||||
Net cash used in operating activities - continuing operations | $ | (53,852) | $ | (66,393) | ||||
Purchases of and deposits on property, plant and equipment | (2,589) | (690) | ||||||
Free cash flow1 - continuing operations | $ | (56,441) | $ | (67,083) | ||||
1Free cash flow is a non-GAAP measure. See "Non-GAAP Measures". |
Schedule 7
Segmented Gross Margin and Segmented Adjusted Gross Margin1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended September 30, | ||||||||
(in thousands of Canadian dollars except where indicated; unaudited) | 2024 | 2023 | ||||||
Net revenue | $ | 37,077 | $ | 40,266 | ||||
Gross margin, as reported | 11,950 | 14,302 | ||||||
Gross margin percentage, as reported | 32 | % | 36 | % | ||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | - | (689) | ||||||
Adjusted gross margin1 | $ | 11,950 | $ | 13,613 | ||||
Adjusted gross margin percentage1 | 32 | % | 34 | % | ||||
International markets cannabis segment | ||||||||
Revenue | $ | 10,060 | $ | 8,977 | ||||
Gross margin, as reported | 4,740 | 2,691 | ||||||
Gross margin percentage, as reported | 47 | % | 30 | % | ||||
Adjusted gross margin1 | $ | 4,740 | $ | 2,691 | ||||
Adjusted gross margin percentage1 | 47 | % | 30 | % | ||||
Storz & Bickel segment | ||||||||
Revenue | $ | 15,854 | $ | 11,991 | ||||
Gross margin, as reported | 5,148 | 3,918 | ||||||
Gross margin percentage, as reported | 32 | % | 33 | % | ||||
Adjusted gross margin1 | $ | 5,148 | $ | 3,918 | ||||
Adjusted gross margin percentage1 | 32 | % | 33 | % | ||||
This Works segment | ||||||||
Revenue | $ | - | $ | 7,074 | ||||
Gross margin, as reported | - | 3,386 | ||||||
Gross margin percentage, as reported | 0 | % | 48 | % | ||||
Adjusted gross margin1 | $ | - | $ | 3,386 | ||||
Adjusted gross margin percentage1 | 0 | % | 48 | % | ||||
Other | ||||||||
Revenue | $ | - | $ | 1,287 | ||||
Gross margin, as reported | - | (871) | ||||||
Gross margin percentage, as reported | 0 | % | (68) | % | ||||
Adjusted gross margin1 | $ | - | $ | (871) | ||||
Adjusted gross margin percentage1 | 0 | % | (68) | % | ||||
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures. See "Non-GAAP Measures". | ||||||||
For Q2 FY2025, amount reflects other revenue adjustments of $nil (Q2 FY2024 -
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SOURCE Canopy Growth Corporation
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