Financial

Canopy Growth Q2 Financials Show Improvement

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 (CNW Group/Canopy Growth Corporation)
Canopy Growth Corporation (TSX: WEED) (Nasdaq: ) announced its financial results for the second quarter ended September 30th, 2023 yesterday. All financial information below is reported in Canadian dollars unless otherwise indicated, and compared to the previous quarter.

Q2 Financial Highlights

  • Total Revenue: $69.6M

    • Adj. Gross Margin: 33% 
  • Canadian: UP 1.0%  to $39.0M 

    • Recreational: DOWN 0.8% to $24.0M
    • Medical: UP 4.2% to $15.0M
    • Adj. Gross Margin: 34%
  • International: DOWN 11.8% to $9.0M

    • Adj. Gross Margin: 30%
  • Total Cannabis: DOWN 1.6% to $48.0M 

    • Share of Total Revenue: 68.8%
  • Other Consumer Products: DOWN 63.9% to $21.7M 

    • BioSteel (beverages) sales removed in Q1
    • Storz & Bickel (vaporizers): DOWN 33.7% to $12.0M

      • Adj. Gross Margin: 33%
    • This Works: UP 18.3% to $7.1M

      • Adj. Gross Margin: 48%
    • Other: DOWN 21.2% to $2.6M

      • Adj. Gross Margin: (27)%
    • Share of Total Revenue: 31.2%
  • Adj. EBITDA: UP 79.5% to $(11.9)M
  • Cash on Hand: DOWN 51.3% to $278M 
  • Net Debt: DOWN 13.3% to $411M

    • Q2 Operational Highlights

  • Canadian medical business delivered 4th consecutive quarter of revenue growth. 
  • Australian medical cannabis business has generated 10 straight quarters of revenue growth.
  • Expanded Storz & Bickel product portfolio with introduction of new Venty portable vaporizer.
  • In August 2023, Wana launched 11 new product SKUs in 4 existing markets. 
  • In July 2023, Jetty introduced its vape products in Colorado and achieved #3 market share in the solvent-less vape cartridge category in that state just 3 months after launch.

  • In August 2023, Jetty expanded its product offering in California with the launch of a family of OCal Certified (California cannabis comparable-to-organic certification) solvent-less vapes.

    • Management Commentary
    David Klein, Chief Executive Officer, said:

  • “Canopy Growth has successfully transformed into an asset-light, cannabis-focused company with a stronger balance sheet. These actions have resulted in a Company that looks and operates fundamentally different than before, a Canopy Growth that is purpose-built for the markets and geographies of greatest opportunity.”

    • Judy Hong, Chief Financial Officer, said:

  • “Our financial results demonstrated marked improvement this quarter, including significant gross margin gains and reduced cash burn. This enhanced performance, together with a series of completed balance sheet strengthening actions, has solidified our foundation and set the stage for profitable growth ahead.”

    • Stock Performance
    Canopy’s stock price was DOWN 65.6% as of the end of Q2 (Sept. 30th) and had declined a further 32.1% as of the close of business yesterday (November 9th) and has gone DOWN another 3.8% today. YTD the stock is DOWN 78.0% (yes, 78%).More By This Author:

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