CGC

Canopy Growth Reports 11% Revenue Decrease in Fiscal Year 2024

Canopy Growth Corporation has released its financial results for the fourth quarter and fiscal year 2024, showcasing several key highlights. In the fourth quarter of fiscal year 2024, the company's net revenue increased by 7% year-over-year to $72.8 million, with a gross margin percentage of 21%. Comparing the same period to the previous year, the gross margin percentage saw a significant improvement of 11,500 basis points, while the adjusted gross margin percentage increased by 1,000 basis points.

Moving on to the full fiscal year 2024, Canopy Growth reported a net revenue of $297.1 million, representing an 11% decrease from the previous fiscal year. However, the gross margin percentage for the full year stood at 27%, marking a substantial improvement of 4,600 basis points compared to the previous year. Similarly, the adjusted gross margin percentage also increased by 2,200 basis points.

The company's net loss from continuing operations in fiscal year 2024 was reported at $483.7 million, while the adjusted EBITDA loss stood at $58.9 million, marking a notable 72% improvement year-over-year. Canopy Growth also highlighted its cash, cash equivalents, and short-term investments of $203 million as of March 31, 2024, further emphasizing its financial stability.

In terms of specific business segments, Storz & Bickel® achieved its best fourth-quarter revenue, with a 43% increase compared to the same period in the previous year. Additionally, the Canada medical cannabis net revenue experienced a 16% increase in the fourth quarter of fiscal year 2024 and a 10% increase for the full fiscal year, demonstrating consistent growth in this segment.

The company also reported a 54% decrease in Canada cannabis cost of goods sold for fiscal year 2024 compared to the previous year, reflecting efficient cost reduction actions. Furthermore, the Canada cannabis segment gross margins improved to 16% in fiscal year 2024, driven by lower excess and obsolete inventory charges and operating costs.

Canopy Growth expressed confidence in its fiscal 2024 achievements and its readiness to capitalize on future growth opportunities, particularly in the rapidly evolving cannabis markets in Germany and the United States. With a strong focus on cannabis and a robust portfolio of high-impact brands, the company is equipped to drive shareholder value and seize growth prospects in the coming fiscal year.

Today the company's shares have moved 1.2% to a price of $8.58. Check out the company's full 8-K submission here.

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