PR Newswire
SMITHS FALLS, ON, Nov. 8, 2024
Storz & Bickel net revenue increased 32% year-over-year in Q2 FY2025
Continued growth across medical cannabis businesses, with net revenue increasing year-over-year by 16% in Canada and 12% in international markets
Further improved balance sheet with early prepayment reducing senior secured term loan by US$100MM
SMITHS FALLS, ON, Nov. 8, 2024 /PRNewswire/ - Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (Nasdaq: CGC) today announces its financial results for the second quarter ended September 30, 2024 ("Q2 FY2025"). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
"We delivered a solid second quarter led by strong growth across our Storz & Bickel, Canadian medical, and European cannabis businesses and we are well positioned to accelerate momentum in the second half of our fiscal year. In addition, we remain highly optimistic about the momentum building within Canopy USA as this strategy was uniquely designed to succeed independent of the need for federal legalization."
David Klein, Chief Executive Officer
"We've demonstrated another quarter of progress towards profitability driven by improvement in gross margins as well as a reduction in SG&A expenses. With expected improvement in top-line growth in the second half of the fiscal year and continued cost discipline, we believe we remain on a path to achieve positive Adjusted EBITDA at the consolidated level in the coming quarters."
Judy Hong, Chief Financial Officer
Second Quarter Fiscal Year 2025 Financial Summary
(in millions of Canadian | Net Revenue | Gross margin | Adjusted | Net loss from | Adjusted | Free cash | |
Reported | $63.0 | 35 % | 35 % | $(131.6) | $(5.5) | $(56.4) | |
vs. Q2 FY2024 | (9 %) | 100 bps | 200 bps | 11 % | 54 % | 16 % |
1 Adjusted gross margin is a non-GAAP measure, and for Q2 FY2025 excludes $nil of restructuring costs recorded in cost of goods sold (Q2 FY2024 - excludes $0.7MM of restructuring cost reversals recorded in cost of goods sold). See "Non-GAAP Measures" and Schedule 4 for a reconciliation of net revenue to adjusted gross margin. |
2 Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures" and Schedule 5 for a reconciliation of net loss from continuing operations to adjusted EBITDA. |
3 Free cash flow is a non-GAAP measure. See "Non-GAAP Measures" and Schedule 6 for a reconciliation of net cash used in operating activities - continuing operations to free cash flow - continuing operations. |
Canada Cannabis Highlights
International Markets Highlights
Storz & Bickel Highlights
Canopy USA Highlights
Second Quarter Fiscal 2025 Revenue Review4
(in thousands of Canadian dollars, unaudited) | Q2 FY2025 | Q2 FY2024 | Vs. Q2 FY2024 | |
Canada cannabis | ||||
Canadian adult-use cannabis5 | $18,388 | $24,087 | (24 %) | |
Canada medical cannabis6 | $18,689 | $16,179 | 16 % | |
$37,077 | $40,266 | (8 %) | ||
International markets cannabis7 | $10,060 | $8,977 | 12 % | |
Storz & Bickel | $15,854 | $11,991 | 32 % | |
This Works | $- | $7,074 | (100 %) | |
Other | $- | $1,287 | (100 %) | |
Net revenue | $62,991 | $69,595 | (9 %) |
The Q2 FY2025 and Q2 FY2024 financial results presented in this press release have been prepared in accordance with U.S. GAAP.
Webcast and Conference Call Information
The Company will host a conference call and audio webcast with David Klein, CEO and Judy Hong, CFO at 10:00 AM Eastern Time on Friday, November 8, 2024.
Webcast Information
A live audio webcast will be available at: https://app.webinar.net/NXnR9dNYmPl.
Replay Information
A replay will be accessible by webcast until 11:59 PM ET on February 6, 2025 at: https://app.webinar.net/NXnR9dNYmPl.
Non-GAAP Measures
Adjusted EBITDA is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes Adjusted EBITDA is a useful measure for investors because it provides meaningful and useful financial information, as this measure demonstrates the operating performance of businesses. Adjusted EBITDA is calculated as the reported net income (loss), adjusted to exclude income tax recovery (expense); other income (expense), net; loss on equity method investments; share-based compensation expense; depreciation and amortization expense; asset impairment and restructuring costs; restructuring costs recorded in cost of goods sold; and charges related to the flow-through of inventory step-up on business combinations, and further adjusted to remove acquisition, divestiture, and other costs. Asset impairments related to periodic changes to the Company's supply chain processes are not excluded from Adjusted EBITDA given their occurrence through the normal course of core operational activities. The Adjusted EBITDA reconciliation is presented within this news release and explained in the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 (the "Form 10-Q") filed with the Securities and Exchange Commission ("SEC").
Free cash flow is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that Free Cash Flow presents meaningful information regarding the amount of cash flow required to maintain and organically expand our business, and that the Free Cash Flow measure provides meaningful information regarding the Company's liquidity requirements. This measure is calculated as net cash provided by (used in) operating activities less purchases of and deposits on property, plant and equipment. The free cash flow reconciliation is presented within this news release and explained in the Form 10-Q filed with the SEC.
Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures used by management that are not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that Adjusted Gross Margin presents meaningful and useful financial information as this measure provides insights into the gross margin performance of the business. Adjusted gross margin is calculated as gross margin excluding restructuring and other charges recorded in cost of goods sold, and charges related to the flow-through of inventory step-up on business combinations. Adjusted gross margin percentage is calculated as adjusted gross margin divided by net revenue. The adjusted gross margin and adjusted gross margin percentage reconciliation is presented within this news release and explained in the Form 10-Q filed with the SEC.
4 In Q2 FY2025, we are reporting our financial results for the following four reportable segments: (i) Canada cannabis; (ii) international markets cannabis; (iii) Storz & Bickel; and (iv) This Works. On December 18, 2023, the Company completed the sale of This Works and as of such date, the results of This Works are no longer included in the Company's financial results. |
5 For Q2 FY2025, amount is net of excise taxes of $8.9MM and other revenue adjustments of $1.3MM (Q2 FY2024 - $10.8MM and $0.5MM, respectively). |
6 For Q2 FY2025, amount is net of excise taxes of $2.1MM (Q2 FY2024 - $1.7MM). |
7 For Q2 FY2025, amount reflects other revenue adjustments of $nil (Q2 FY2024 - $0.1MM). |
About Canopy Growth
Canopy Growth is a world leading cannabis company dedicated to unleashing the power of cannabis to improve lives.
Through an unwavering commitment to our consumers, Canopy Growth delivers innovative products with a focus on premium and mainstream cannabis brands including Doja, 7ACRES, Tweed, and Deep Space, in addition to category defining vaporizer technology made in Germany by Storz & Bickel.
Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through an unconsolidated, non-controlling interest in Canopy USA. Canopy USA has closed the acquisitions of approximately 77% of the shares of Jetty and 100% of Wana. Jetty owns and operates Jetty Extracts, a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology, and Wana is a leading North American edibles brand. The option to acquire Acreage, a vertically integrated multi-state cannabis operator with principal operations in densely populated states across the Northeast and Midwest, has also been exercised.
Beyond its world-class products, Canopy Growth is leading the industry forward through a commitment to social equity, responsible use, and community reinvestment – pioneering a future where cannabis is understood and welcomed for its potential to help achieve greater well-being and life enhancement.
For more information visit www.canopygrowth.com.
Notice Regarding Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws, which involve certain known and unknown risks and uncertainties. To the extent any forward-looking statements in this news release constitutes "financial outlooks" within the meaning of applicable Canadian securities laws, the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies and the performance of our investments. These forward-looking statements are generally identified by their use of such terms and phrases as "intend," "goal," "strategy," "estimate," "expect," "project," "projections," "forecasts," "plans," "seeks," "anticipates," "potential," "proposed," "will," "should," "could," "would," "may," "likely," "designed to," "foreseeable future," "believe," "scheduled" and other similar expressions. Our actual results or outcomes may differ materially from those anticipated. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
Forward-looking statements include, but are not limited to, statements with respect to:
Certain of the forward-looking statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research, industry analysis and on assumptions based on data and knowledge of these industries, which we believe to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. The industries in which we conduct our business involve risks and uncertainties that are subject to change based on various factors, which are described further below.
The forward-looking statements contained herein are based upon certain material assumptions , including: (i) management's perceptions of historical trends, current conditions and expected future developments; (ii) our ability to generate cash flow from operations; (iii) general economic, financial market, regulatory and political conditions in which we operate; (iv) the production and manufacturing capabilities and output from our facilities, strategic alliances and equity investments; (v) consumer interest in our products; (vi) competition; (vii) anticipated and unanticipated costs; (viii) government regulation of our activities and products including but not limited to the areas of taxation and environmental protection; (ix) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses; * our ability to obtain qualified staff, equipment and services in a timely and cost-efficient manner; (xi) our ability to conduct operations in a safe, efficient and effective manner; (xii) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our recent acquisitions into our existing operations; and (xiii) other considerations that management believes to be appropriate in the circumstances. While our management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. Financial outlooks, as with forward-looking statements generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. Our actual financial position and results of operations may differ materially from management's current expectations.
By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking statements in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf. Such factors include, without limitation, our limited operating history; our ability to continue as a going concern; risks that we may be required to write down intangible assets, including goodwill, due to impairment; the adequacy of our capital resources and liquidity, including but not limited to, availability of sufficient cash flow to execute our business plan (either within the expected timeframe or at all); our ability to maintain an effective system of internal control; the diversion of management time on matters related to Canopy USA; the ability of parties to certain transactions to receive, in a timely manner and on satisfactory terms, the necessary regulatory approvals; the risks that the Trust's future ownership interest in Canopy USA is not quantifiable, and the Trust may have significant ownership and influence over Canopy USA; the risks relating to the conditions set forth in the Floating Share Arrangement Agreement and the Existing Acreage Arrangement Agreement not being satisfied or waived; the risks related to Acreage's financial statements expressing doubt about its ability to continue as a going concern; the risks in the event that Acreage cannot satisfy its debt obligations as they become due;; volatility in and/or degradation of general economic, market, industry or business conditions; risks relating to our current and future operations in emerging markets; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations and in particular health concerns with respect to vaping and the use of cannabis products in vaping devices; risks and uncertainty regarding future product development; changes in regulatory requirements in relation to our business and products; our reliance on licenses issued by and contractual arrangements with various federal, state and provincial governmental authorities; inherent uncertainty associated with projections; future levels of revenues and the impact of increasing levels of competition; third-party manufacturing risks; third-party transportation risks; inflation risks; our exposure to risks related to an agricultural business, including wholesale price volatility and variable product quality; changes in laws, regulations and guidelines and our compliance with such laws, regulations and guidelines; risks relating to inventory write downs; risks relating to our ability to refinance debt as and when required on terms favorable to us and to comply with covenants contained in our debt facilities and debt instruments; risks associated with jointly owned investments; our ability to manage disruptions in credit markets or changes to our credit ratings; the success or timing of completion of ongoing or anticipated capital or maintenance projects; risks related to the integration of acquired businesses; the timing and manner of the legalization of cannabis in the United States; business strategies, growth opportunities and expected investment; counterparty risks and liquidity risks that may impact our ability to obtain loans and other credit facilities on favorable terms; the potential effects of judicial, regulatory or other proceedings, litigation or threatened litigation or proceedings, or reviews or investigations, on our business, financial condition, results of operations and cash flows; risks associated with divestment and restructuring; the anticipated effects of actions of third parties such as competitors, activist investors or federal, state, provincial, territorial or local regulatory authorities, self-regulatory organizations, plaintiffs in litigation or persons threatening litigation; consumer demand for cannabis and hemp products; the implementation and effectiveness of key personnel changes; risks related to stock exchange restrictions; risks related to the protection and enforcement of our intellectual property rights; the risks related to our exchangeable shares (the "Exchangeable Shares") having different rights from our common shares and there may never be a trading market for the Exchangeable Shares; future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses; and the factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024 and in Item 1A of Part II of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024 to be filed with the SEC. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.
Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management's current expectations and plans relating to the future, and the reader is cautioned that the forward-looking statements may not be appropriate for any other purpose. While we believe that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements are made as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking statements, except as required by law. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.
Schedule 1
CANOPY GROWTH CORPORATION | ||||||||
September 30, | March 31, | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 228,416 | $ | 170,300 | ||||
Short-term investments | 2,805 | 33,161 | ||||||
Restricted short-term investments | 7,490 | 7,310 | ||||||
Amounts receivable, net | 41,860 | 51,847 | ||||||
Inventory | 90,094 | 77,292 | ||||||
Assets of discontinued operations | - | 8,038 | ||||||
Prepaid expenses and other assets | 21,000 | 23,232 | ||||||
Total current assets | 391,665 | 371,180 | ||||||
Equity method investments | 136,377 | - | ||||||
Other financial assets | 242,145 | 437,629 | ||||||
Property, plant and equipment | 303,165 | 320,103 | ||||||
Intangible assets | 95,386 | 104,053 | ||||||
Goodwill | 44,531 | 43,239 | ||||||
Other assets | 19,079 | 24,126 | ||||||
Total assets | $ | 1,232,348 | $ | 1,300,330 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 18,364 | $ | 28,673 | ||||
Other accrued expenses and liabilities | 42,736 | 54,039 | ||||||
Current portion of long-term debt | 137,918 | 103,935 | ||||||
Other liabilities | 82,266 | 48,068 | ||||||
Total current liabilities | 281,284 | 234,715 | ||||||
Long-term debt | 415,932 | 493,294 | ||||||
Other liabilities | 25,464 | 71,814 | ||||||
Total liabilities | 722,680 | 799,823 | ||||||
Commitments and contingencies | ||||||||
Canopy Growth Corporation shareholders' equity: | ||||||||
Share capital | 8,490,670 | 8,244,301 | ||||||
Additional paid-in capital | 2,620,491 | 2,602,148 | ||||||
Accumulated other comprehensive loss | (16,032) | (16,051) | ||||||
Deficit | (10,585,461) | (10,330,030) | ||||||
Total Canopy Growth Corporation shareholders' equity | 509,668 | 500,368 | ||||||
Noncontrolling interests | - | 139 | ||||||
Total shareholders' equity | 509,668 | 500,507 | ||||||
Total liabilities and shareholders' equity | $ | 1,232,348 | $ | 1,300,330 |
Schedule 2
CANOPY GROWTH CORPORATION | ||||||||
Three months ended September 30, | ||||||||
2024 | 2023 | |||||||
Revenue | $ | 73,958 | $ | 82,076 | ||||
Excise taxes | 10,967 | 12,481 | ||||||
Net revenue | 62,991 | 69,595 | ||||||
Cost of goods sold | 41,153 | 46,169 | ||||||
Gross margin | 21,838 | 23,426 | ||||||
Operating expenses | ||||||||
Selling, general and administrative expenses | 41,730 | 57,611 | ||||||
Share-based compensation | 5,221 | 2,717 | ||||||
Loss (gain) on asset impairment and restructuring | 20,830 | (29,895) | ||||||
Total operating expenses | 67,781 | 30,433 | ||||||
Operating loss from continuing operations | (45,943) | (7,007) | ||||||
Other income (expense), net | (85,305) | (128,334) | ||||||
Loss from continuing operations before income taxes | (131,248) | (135,341) | ||||||
Income tax expense | (302) | (12,821) | ||||||
Net loss from continuing operations | (131,550) | (148,162) | ||||||
Discontinued operations, net of income tax | 3,257 | (176,638) | ||||||
Net loss | (128,293) | (324,800) | ||||||
Discontinued operations attributable to noncontrolling | - | (14,786) | ||||||
Net loss attributable to Canopy Growth Corporation | $ | (128,293) | $ | (310,014) | ||||
Basic and diluted loss per share1 | ||||||||
Continuing operations | $ | (1.52) | $ | (2.07) | ||||
Discontinued operations | 0.04 | (2.26) | ||||||
Basic and diluted loss per share | $ | (1.48) | $ | (4.33) | ||||
Basic and diluted weighted average common shares | 86,827,991 | 71,629,443 |
1 Prior year share and per share amounts have been retrospectively adjusted to reflect the Share Consolidation, which became effective on December 15, 2023. |
Schedule 3
CANOPY GROWTH CORPORATION | ||||||||
Six months ended September 30, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (255,431) | $ | (366,661) | ||||
Gain (loss) from discontinued operations, net of income tax | 5,310 | (207,930) | ||||||
Net loss from continuing operations | (260,741) | (158,731) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation of property, plant and equipment | 10,628 | 16,568 | ||||||
Amortization of intangible assets | 10,709 | 13,073 | ||||||
Share-based compensation | 9,372 | 6,434 | ||||||
Loss (gain) on asset impairment and restructuring | 18,768 | (25,986) | ||||||
Income tax expense | 6,496 | 14,839 | ||||||
Non-cash fair value adjustments and charges related to | 147,290 | 44,438 | ||||||
Change in operating assets and liabilities, net of effects from | ||||||||
Amounts receivable | 3,892 | (12,903) | ||||||
Inventory | (11,972) | (4,240) | ||||||
Prepaid expenses and other assets | (5,643) | (250) | ||||||
Accounts payable and accrued liabilities | (22,000) | (13,038) | ||||||
Other, including non-cash foreign currency | (12,431) | (52,817) | ||||||
Net cash used in operating activities - continuing operations | (105,632) | (172,613) | ||||||
Net cash used in operating activities - discontinued operations | - | (54,709) | ||||||
Net cash used in operating activities | (105,632) | (227,322) | ||||||
Cash flows from investing activities: | ||||||||
Purchases of and deposits on property, plant and equipment | (6,509) | (2,636) | ||||||
Purchases of intangible assets | (14) | (803) | ||||||
Proceeds on sale of property, plant and equipment | 4,932 | 152,417 | ||||||
Redemption of short-term investments | 30,184 | 81,015 | ||||||
Net cash outflow on sale or deconsolidation of subsidiaries | (6,968) | - | ||||||
Net cash inflow on loan receivable | 28,303 | 831 | ||||||
Investment in other financial assets | (95,335) | (472) | ||||||
Other investing activities | - | (10,513) | ||||||
Net cash (used in) provided by investing activities - continuing operations | (45,407) | 219,839 | ||||||
Net cash provided by (used in) investing activities - discontinued operations | 13,414 | (17,122) | ||||||
Net cash (used in) provided by investing activities | (31,993) | 202,717 | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common shares and warrants | 138,476 | 33,795 | ||||||
Proceeds from exercise of stock options | 112 | - | ||||||
Proceeds from exercise of warrants | 8,454 | - | ||||||
Issuance of long-term debt and convertible debentures | 68,255 | - | ||||||
Repayment of long-term debt | (13,484) | (415,185) | ||||||
Other financing activities | (7,096) | (25,908) | ||||||
Net cash provided by (used in) financing activities | 194,717 | (407,298) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 1,024 | (2,129) | ||||||
Net increase (decrease) in cash and cash equivalents | 58,116 | (434,032) | ||||||
Cash and cash equivalents, beginning of period1 | 170,300 | 677,007 | ||||||
Cash and cash equivalents, end of period2 | $ | 228,416 | $ | 242,975 | ||||
1 Includes cash of our discontinued operations of $nil and $9,314 for March 31, 2024 and 2023, respectively. | ||||||||
2 Includes cash of our discontinued operations of $nil and $2,599 for September 30, 2024 and 2023, respectively. |
Schedule 4
Adjusted Gross Margin1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended September 30, | ||||||||
(in thousands of Canadian dollars except where indicated; unaudited) | 2024 | 2023 | ||||||
Net revenue | $ | 62,991 | $ | 69,595 | ||||
Gross margin, as reported | 21,838 | 23,426 | ||||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | - | (689) | ||||||
Adjusted gross margin1 | $ | 21,838 | $ | 22,737 | ||||
Adjusted gross margin percentage1 | 35 | % | 33 | % | ||||
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures. See "Non-GAAP Measures". |
Schedule 5
Adjusted EBITDA1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended September 30, | ||||||||
(in thousands of Canadian dollars, unaudited) | 2024 | 2023 | ||||||
Net loss from continuing operations | $ | (131,550) | $ | (148,162) | ||||
Income tax expense | 302 | 12,821 | ||||||
Other (income) expense, net | 85,305 | 128,334 | ||||||
Share-based compensation | 5,221 | 2,717 | ||||||
Acquisition, divestiture, and other costs | 4,078 | 10,488 | ||||||
Depreciation and amortization | 10,307 | 12,530 | ||||||
Loss (gain) on asset impairment and restructuring | 20,830 | (29,895) | ||||||
Restructuring costs recorded in cost of goods sold | - | (689) | ||||||
Adjusted EBITDA1 | $ | (5,507) | $ | (11,856) | ||||
1Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures". |
Schedule 6
Free Cash Flow1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended September 30, | ||||||||
(in thousands of Canadian dollars, unaudited) | 2024 | 2023 | ||||||
Net cash used in operating activities - continuing operations | $ | (53,852) | $ | (66,393) | ||||
Purchases of and deposits on property, plant and equipment | (2,589) | (690) | ||||||
Free cash flow1 - continuing operations | $ | (56,441) | $ | (67,083) | ||||
1Free cash flow is a non-GAAP measure. See "Non-GAAP Measures". |
Schedule 7
Segmented Gross Margin and Segmented Adjusted Gross Margin1 Reconciliation (Non-GAAP Measure) | ||||||||
Three months ended September 30, | ||||||||
(in thousands of Canadian dollars except where indicated; unaudited) | 2024 | 2023 | ||||||
Canada cannabis segment | ||||||||
Net revenue | $ | 37,077 | $ | 40,266 | ||||
Gross margin, as reported | 11,950 | 14,302 | ||||||
Gross margin percentage, as reported | 32 | % | 36 | % | ||||
Adjustments to gross margin: | ||||||||
Restructuring costs recorded in cost of goods sold | - | (689) | ||||||
Adjusted gross margin1 | $ | 11,950 | $ | 13,613 | ||||
Adjusted gross margin percentage1 | 32 | % | 34 | % | ||||
International markets cannabis segment | ||||||||
Revenue | $ | 10,060 | $ | 8,977 | ||||
Gross margin, as reported | 4,740 | 2,691 | ||||||
Gross margin percentage, as reported | 47 | % | 30 | % | ||||
Adjusted gross margin1 | $ | 4,740 | $ | 2,691 | ||||
Adjusted gross margin percentage1 | 47 | % | 30 | % | ||||
Storz & Bickel segment | ||||||||
Revenue | $ | 15,854 | $ | 11,991 | ||||
Gross margin, as reported | 5,148 | 3,918 | ||||||
Gross margin percentage, as reported | 32 | % | 33 | % | ||||
Adjusted gross margin1 | $ | 5,148 | $ | 3,918 | ||||
Adjusted gross margin percentage1 | 32 | % | 33 | % | ||||
This Works segment | ||||||||
Revenue | $ | - | $ | 7,074 | ||||
Gross margin, as reported | - | 3,386 | ||||||
Gross margin percentage, as reported | 0 | % | 48 | % | ||||
Adjusted gross margin1 | $ | - | $ | 3,386 | ||||
Adjusted gross margin percentage1 | 0 | % | 48 | % | ||||
Other | ||||||||
Revenue | $ | - | $ | 1,287 | ||||
Gross margin, as reported | - | (871) | ||||||
Gross margin percentage, as reported | 0 | % | (68) | % | ||||
Adjusted gross margin1 | $ | - | $ | (871) | ||||
Adjusted gross margin percentage1 | 0 | % | (68) | % | ||||
1 Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures. See "Non-GAAP Measures". | ||||||||
For Q2 FY2025, amount reflects other revenue adjustments of $nil (Q2 FY2024 - $0.1MM).
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SOURCE Canopy Growth Corporation