Canopy Growth Q1 Revenue Drops 13% YoY, Reports Wider Net Loss

Author: Jelena Martinovic | August 09, 2024 10:09am

Canopy Growth Corporation (TSX:WEED) (NASDAQ:CGC) announced its financial results Friday for the first quarter ended June 30, 2024.

The Canadian cannabis giant reported a record quarter for Canadian medical marijuana, with new revenue surging 20% year-over-year and representing the 6th consecutive quarter of growth.

In addition, the company has been ramping up its efforts to expand in the U.S. market via the Canopy USA business unit.

See Also: Canopy Growth Doubles Down On Its USA Strategy, Announces Exercise of Acreage Options

“The fundamentals of our business continue to strengthen, and our focus on profitable revenue generation is yielding clear results as we set the stage for growth in the second half of fiscal 2025," David Klein, the company's CEO, said. "With our core businesses delivering adjusted EBITDA profitability and primed for growth, paired with Canopy USA’s positioning to benefit from near-term market opportunities in the U.S., Canopy Growth is advancing rapidly and is well established for multi-market cannabis leadership.”

Q1 2025 Financial Highlights

• Net revenue declined by 13% year-over-year to CA$66.2 million ($48.1 million) driven mostly by the impact of divested businesses.
• Achieved gross profit was CA$23 million representing a 67% increase over the first quarter ended June 30, 2023, despite a decline in consolidated net revenue.
• Delivered consolidated gross margin of 35%, and Canada cannabis segment gross margin of 32% during the period.
• Operating loss from continuing operations was CA$29 million, representing a 47% year-over-year improvement.
• Net loss from continuing operations CA$129.2 million, representing a year-over-year increase of 1.122%.
• Consolidated adjusted EBITDA came in negative at CA$5.3 million, representing a 77% improvement year-over-year.
• Storz & Bickel net revenue increased 2% year-over-year, led by over 100% growth in Storz & Bickel sales in Germany, which offset a sales decline in the non-medical vaporizer channel in Australia following a regulatory change.
• Selling, general and administrative expenses were CA$48 million, representing a decrease of 24% year-over-year in part due to continued spending discipline across the organization.
• Free cash flow was an outflow of CA$56 million, an improvement of 49% year-over-year.

CGC Price Action

Canopy's shares traded 8.38% lower at $6.32 per share at the time of writing on Friday morning.

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Posted In: CGC TSX:WEED WEED