Canopy Growth Reports Fourth Quarter and Fiscal Year 2024 Financial Results; Q4 FY2024 Net Revenue increased 7% year-over-year, or 16% excluding divested businesses

Core Insights - Canopy Growth Corporation reported a strong financial performance for Q4 FY2024, with net revenue increasing by 7% year-over-year to $72.8 million, driven by a 43% increase in Storz & Bickel's revenue and a 16% increase in Canada medical cannabis revenue [1][4][11] - The company achieved significant cost reductions, with the Cost of Goods Sold (COGS) decreasing by 54% in Canada cannabis for FY2024 compared to FY2023, contributing to improved gross margins [6][11] - Canopy Growth has no material debt obligations due until March 2026, enhancing its financial stability and positioning for future growth opportunities [1][3][6] Financial Performance - Q4 FY2024 net revenue was $72.8 million, a 7% increase from Q4 FY2023, with gross margins improving to 21%, an increase of 4,600 basis points year-over-year [4][11] - For FY2024, total net revenue was $297.1 million, a decrease of 11% compared to FY2023, with a reported operating loss from continuing operations of $483.7 million [7][11] - Adjusted EBITDA loss improved by 72% year-over-year to $59 million in FY2024, reflecting successful cost reduction measures and revenue growth [6][11] Market and Product Highlights - The Canada medical cannabis segment achieved its fifth consecutive quarter of revenue growth, with a 16% increase in Q4 FY2024, supported by a larger product assortment [11][12] - International markets cannabis revenue increased by 32% in Q4 FY2024, driven by growth in Germany and Poland [11][12] - Storz & Bickel's revenue surged by 43% in Q4 FY2024, attributed to strong sales of the new Venty portable vaporizer [6][11] Strategic Initiatives - Canopy Growth is focusing on innovation and expanding distribution channels to drive growth in the Canadian cannabis market [10][12] - The company has initiated acquisitions in the U.S. market, including Mountain High Products, Wana Wellness, and Jetty, expected to close in the first half of FY2025 [14][12] - Canopy Growth's strategy includes capitalizing on regulatory developments in Germany and the U.S., positioning itself in attractive cannabis markets globally [3][12]