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Canopy Growth(CGC) - 2025 Q4 - Annual Results
CGCCanopy Growth(CGC)2025-05-30 11:19

Revenue Performance - Canada cannabis revenue increased by 4% in Q4 FY2025 year-over-year, driven by a 13% growth in Canada medical cannabis[1] - Canada medical cannabis net revenue increased by 13% to 20millioninQ4FY2025,whileCanadaadult−usecannabisnetrevenuedeclinedby320 million in Q4 FY2025, while Canada adult-use cannabis net revenue declined by 3% to 20.4 million[17] - International markets cannabis net revenue decreased by 35% to 8millioninQ4FY2025,primarilyduetodeclinesinPolandandAustralia[12]−CanopyGrowthCorporationreportedanetrevenueofCAD65,031thousandforthethreemonthsendedMarch31,2025,adecreaseof10.48 million in Q4 FY2025, primarily due to declines in Poland and Australia[12] - Canopy Growth Corporation reported a net revenue of CAD 65,031 thousand for the three months ended March 31, 2025, a decrease of 10.4% compared to CAD 72,788 thousand for the same period in 2024[52] - The Canada cannabis segment reported net revenue of CAD 40,377 thousand for the three months ended March 31, 2025, up from CAD 38,622 thousand in 2024, with an adjusted gross margin percentage of 11%[63] - For the year ended March 31, 2025, the Canada cannabis segment's net revenue was CAD 155,860 thousand, slightly down from CAD 159,165 thousand in 2024, but with an improved adjusted gross margin percentage of 25%[66] Financial Performance - Total debt was reduced by 293 million, or 49%, during FY2025, decreasing to 304millionasofMarch31,2025[1]−AdjustedEBITDAlossimprovedby39304 million as of March 31, 2025[1] - Adjusted EBITDA loss improved by 39% year-over-year to 9 million in Q4 FY2025, and by 60% to 24millioninFY2025[2]−Freecashflowoutflowwas24 million in FY2025[2] - Free cash flow outflow was 36 million in Q4 FY2025, a 60% increase in outflow compared to Q4 FY2024, while FY2025 outflow improved by 24% to 177million[12]−Consolidatedgrossmargindecreasedby500basispointsto16177 million[12] - Consolidated gross margin decreased by 500 basis points to 16% in Q4 FY2025, while adjusted gross margin decreased by 200 basis points to 19%[12] - The company experienced a net loss from continuing operations of CAD 604,138 thousand for the year ended March 31, 2025, compared to a net loss of CAD 483,682 thousand for the previous year, reflecting a 24.9% increase in losses[55] - The company reported a net loss from continuing operations of CAD 221,501 thousand for the three months ended March 31, 2025, compared to a loss of CAD 94,675 thousand in the same period of 2024, indicating a significant increase in losses[59] - Adjusted EBITDA for the three months ended March 31, 2025, was CAD (9,248) thousand, an improvement from CAD (15,091) thousand in the prior year[59] - Free cash flow for the three months ended March 31, 2025, was CAD (36,241) thousand, compared to CAD (22,709) thousand in the same period of 2024, reflecting increased cash usage[61] Asset and Liability Management - Total current assets decreased to CAD 294,574 thousand as of March 31, 2025, down from CAD 371,180 thousand as of March 31, 2024, representing a decline of 20.7%[48] - Canopy Growth's total liabilities decreased to CAD 430,488 thousand as of March 31, 2025, from CAD 799,823 thousand a year earlier, indicating a reduction of 46.1%[50] - The total assets of Canopy Growth Corporation decreased to CAD 917,701 thousand as of March 31, 2025, down from CAD 1,300,330 thousand as of March 31, 2024, a decline of 29.4%[48] - The company reported cash and cash equivalents of CAD 113,811 thousand as of March 31, 2025, a decrease of 33.2% from CAD 170,300 thousand at the end of the previous year[55] - Canopy Growth's inventory increased to CAD 96,373 thousand as of March 31, 2025, up from CAD 77,292 thousand a year earlier, reflecting a rise of 24.7%[48] Strategic Initiatives - Additional cost reduction initiatives are expected to deliver at least 20 million in annualized savings over the next 12-18 months[1] - The company aims to achieve positive adjusted EBITDA in the near term and positive free cash flow over time as it accelerates growth in global medical cannabis[2] - Canopy Growth is focused on expanding its presence in the U.S. cannabis market through Canopy USA, which includes ownership of Acreage and Wana, aiming to capitalize on growth opportunities[33] - The company anticipates growth in customer numbers and revenue, driven by new product offerings and market expansion strategies[43] - Canopy Growth is actively pursuing acquisitions, including the final tranche closing for Jetty, with an investment of up to $20 million from the Huneeus 2017 Irrevocable Trust[38] Operational Metrics - The company emphasizes the importance of Adjusted EBITDA as a key performance metric, which excludes various costs to provide a clearer picture of operational performance[27] - Free Cash Flow is highlighted as a critical measure for assessing liquidity, calculated as net cash from operating activities minus capital expenditures[28] - Adjusted Gross Margin and Adjusted Gross Margin Percentage are used to evaluate gross margin performance, excluding restructuring charges[29] Regulatory and Compliance - Canopy Growth is navigating regulatory uncertainties in the U.S. cannabis market, which may impact its business strategies and operations[36] - The company is focused on maintaining effective internal controls and ensuring compliance with financial reporting standards[41] - Future performance expectations are subject to various risks, including market conditions, competition, and regulatory changes[42] Cost Management - The company incurred acquisition, divestiture, and other costs of CAD 5,202 thousand for the three months ended March 31, 2025, down from CAD 13,062 thousand in the same period of 2024[59] - The company experienced a loss on asset impairment and restructuring of CAD 9,098 thousand for the three months ended March 31, 2025, compared to CAD 63,535 thousand in the same period of 2024[59]