Canopy Growth(US:CGC) Prnewswireยท2024-08-09 11:15Core Insights - Canopy Growth Corporation reported a 67% increase in gross profit year-over-year, achieving a gross profit of $23 million in Q1 FY2025 despite a decline in consolidated net revenue [3][4][5] - The company demonstrated significant improvements in financial metrics, including a 47% reduction in operating loss from continuing operations and a 77% improvement in consolidated Adjusted EBITDA loss [3][7][8] - The company is focused on profitable revenue generation and is well-positioned for growth in the U.S. cannabis market through its subsidiary, Canopy USA [4][12][19] Financial Performance - Consolidated net revenue decreased by 13% to $66.2 million in Q1 FY2025, primarily due to the impact of divested businesses [6][7] - The gross margin increased by 1,700 basis points to 35%, driven by improvements in the Canada cannabis segment and cost savings initiatives [7][8] - Operating loss from continuing operations was $29 million, a 47% improvement compared to Q1 FY2024, while Adjusted EBITDA loss narrowed to $5 million [3][6][7] Segment Performance - Canada cannabis segment net revenue was $38 million, a decrease of 6% year-over-year, with medical cannabis net revenue increasing by 20% [8][9] - International markets cannabis net revenue declined by 1%, with growth in Poland offset by a decline in Australia [9][10] - Storz & Bickel net revenue increased by 2%, driven by strong sales in Germany and the introduction of new products [10][11] Strategic Initiatives - The company extended the maturity of its senior secured term loan to December 18, 2026, with an option to extend further to September 18, 2027, enhancing financial flexibility [2][5][7] - Canopy USA is advancing its market position through acquisitions and product launches, including the introduction of Wana Brands edibles in Connecticut and New York [12][19] - The company is actively working to strengthen its balance sheet and reduce debt, with significant deleveraging actions planned [7][8][9]