Canopy Growth Reports Q4 and Fiscal Year 2024 Financial Results

LOS ANGELES- Canopy Growth Corp. announced its financial results for the fourth quarter and fiscal year ending March 31, 2024, indicating progress in alleviating financial pressures faced in 2023.

Q4 and Full-Year Financial Performance

In the fourth quarter, Canopy Growth reported a 7% increase in revenue compared to the same period last year, reaching $72.8 million. This exceeded the Yahoo Finance analyst estimate of $52.99 million. However, the net loss for Q4 increased by 84% to $94.7 million.

For the full year, Canopy’s total revenue decreased to $343 million from $381 million in 2023 and $537 million in 2022. Net revenue for fiscal 2024 was $297.1 million, down from $333.3 million in fiscal 2023. The decline in revenue was attributed to the divestiture of its Canadian retail business and This Works, as well as reduced sales in the Canadian business-to-business channel. These declines were partially offset by growth in the Canadian medical market and international cannabis sales.

The company reduced its net loss for the fiscal year to $657 million, significantly lower than the previous year’s net loss of $3.2 billion. Loss per share was ($8.79), compared to last year’s ($70.69).

Financial Improvements and Strategic Actions

Canopy Growth’s cash reserves decreased from $667 million at the end of 2023 to $170 million by the end of Q4 2024. Despite this, the company addressed several financial concerns from the previous year:

• $35 Million Private Placement: Completed in January.
• $25 Million from BioSteel Canada Sale: Received in March.
• Exchange of $100 Million Promissory Note: Converted into exchangeable shares of Canopy Growth.
• New Financing: Received gross proceeds of approximately $50 million and restructured $27.5 million of existing debt into a new senior unsecured convertible debenture maturing in May 2029, with issuance of warrants.

These measures have alleviated immediate financial pressures, with no material debt obligations due until March 2026. The sale of This Works and other divestitures were completed, streamlining operations.

Strategic Initiatives and Future Outlook

Canopy Growth took a $42 million impairment charge for Storz & Bickel, despite a 43% increase in its net revenue, driven by strong sales of the new Venty portable vaporizer.

CEO David Klein highlighted the company’s preparation for future growth, emphasizing regulatory opportunities in Germany and the United States. CFO Judy Hong noted the substantial progress in reducing expenses, cash burn, and debt, enhancing financial stability and moving towards positive consolidated adjusted EBITDA.

Post-Quarter Developments

Canopy Growth has made significant moves post-Q4 that may impact its financial health positively:

• New Class of Shares: Approved the creation of a new class of non-voting and non-participating exchangeable shares.
• Constellation Brands Share Conversion: Announced conversion of Constellation Brands’ common shares to exchangeable shares.
• Acquisitions: Canopy USA initiated acquisitions of Mountain High Products, Wana Wellness, The Cima Group, and Lemurian Inc. (Jetty), expected to close in the first half of FY2025.

These strategic actions aim to position Canopy Growth for sustainable growth and enhanced shareholder value as the company navigates the evolving cannabis market landscape.