Canopy Growth Corporation Reports Q1 FY2025 Financial Results
Intellectia.AI Updated: 1970-01-01
Canopy Growth Corporation Reports Q1 FY2025 Financial Results
Canopy Growth Corporation ("Canopy Growth" or the "Company") announced its financial results for the first quarter ended June 30, 2024 ("Q1 FY2025").
Key Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue (Net) | $66M | $75.86M | -13% | $51.85M |
| EPS | Not Provided | Not Provided | Not Provided | $-0.34 |
| Gross Profit | $23M | Not Provided | 67% | Not Provided |
| Operating Loss | $29M | $54.7M | -47% | Not Provided |
| Adjusted EBITDA Loss | $5M | $21.74M | -77% | Not Provided |
Interpretation : Canopy Growth achieved a substantial 67% year-over-year increase in gross profit for Q1 FY2025 despite a 13% decline in total revenue, driven by divested businesses. Operating loss and Adjusted EBITDA both showed significant improvements due to cost reduction measures.
Revenue Performance by Segment
| Segment | Q1 FY2025 | Q1 FY2024 | YoY Change |
|---|---|---|---|
| Canada Cannabis (Net Revenue) | $38M | Not Provided | -6% |
| International Markets Cannabis | Not Provided | Not Provided | -1% |
| Storz & Bickel | Not Provided | Not Provided | 2% |
Interpretation : The Canada cannabis segment saw a 6% decrease in net revenue year-over-year, balanced by a 20% increase in medical cannabis net revenue. International markets experienced a slight decline of 1%, with Storz & Bickel showing a modest growth of 2%.
Officer Comments
David Klein, CEO : "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."
Judy Hong, CFO : "Our strategic initiatives have led to notable improvements in Gross Margins and Adjusted EBITDA as well as a reduction in SG&A expenses."
Dividend or Share Repo Program
No dividends or share repurchase programs were announced.
Forward Guidance
No forward guidance was provided in the earnings release.
Stock Price Movement
Following the earnings release, Canopy Growth's stock experienced a positive movement, increasing by 2.75%.
In summary, Canopy Growth has shown significant improvements in profitability metrics and gross margins while strategically optimizing its operational costs. The company's balanced growth strategy places it well for potential future market opportunities.
