Canopy Growth - CEO, David Klein
CEO, David Klein
Source: FoodBev Media
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  • Financial highlights include Q4 net revenue of $112 million and FY2022 net revenue of $520 million
  • Net loss in Q4 was $579 million, a $38 million improvement versus Q4 FY2021
  • Net loss in FY2022 was $320 million, a $1.3 billion improvement versus FY2021
  • Canopy Growth is a Canada-based cannabis and cannabinoid-based consumer product company
  • Canopy Growth Corporation (WEED) is down 14.47 per cent, trading at C$6.09 per share at 12 pm ET

Canopy Growth Corporation (WEED) has released its financial results for the fourth quarter and fiscal year ended March 31, 2022.

Highlights:

  • Canopy Growth announced plans to acquire Wana Brands
  • The company maintained #1 share of premium flower category throughout FY2022
  • Storz & Bickel posted revenue growth in FY2022; strong consumer demand for Storz & Bickel vaporizers drove a 21 per cent increase in revenue in Q4 FY2022 versus Q4 FY2021.
  • Increased distribution of BioSteel hydration products drove year-over-year revenue growth of 56 per cent in FY2022 versus FY2021
  • Net revenue of $520 million in FY2022, down 5 per cent versus FY2021.
  • Through restructuring measures, management expects to generate COGS savings of $30 – $50 million and SG&A expense reductions of $70 – $100 million, both within 12 to 18 months.

David Klein, Chief Executive Officer commented on the results.

“Canopy Growth is building the industry’s leading portfolio of premium brands across North America. We’ve taken concrete steps to advance this ambition by strengthening our positioning in Canada, and further bolstering our U.S. THC ecosystem through the addition of two high performance brands in Wana Brands and Jetty Extracts. In the fiscal year ahead, we will remain focused on growing our market share in the key segments that will drive profitable growth and continuing to scale our premium brands across North America.”

Judy Hong, Chief Financial Officer added,

“Achieving profitability is critical and we have undertaken additional initiatives to streamline and drive efficiencies for our global cannabis business. In FY2023, we are focused on executing our path to profitability in Canada, while we continue to invest in high potential opportunities – particularly in BioSteel, and further developing our U.S. THC ecosystem, which we believe remains significantly under-appreciated by the market.”

Q4 & FY2022 summary:

  • Q4 Net revenue of $112 million, down 25 per cent versus Q4 FY2021
  • FY2022 net revenue of $520 million, down 5 per cent versus FY2021
  • Net loss in Q4 was $579 million, a $38 million improvement versus Q4 FY2021
  • Net loss in FY2022 was $320 million, a $1.3 billion improvement versus FY2021
  • Total global cannabis net revenue of $66 million in Q4 FY2022, down 35 per cent over Q4 FY2021
  • Gross margin in Q4 was (142 per cent) as compared to 7 per cent in Q4 FY2021
  • Reported gross margin in FY2022 was (37 per cent) as compared to 12 per cent in FY2021
  • Adjusted EBITDA loss in Q4 was $122 million, a $28 million increase versus Q4 FY2021
  • Total SG&A expenses in Q4 FY2022 declined by 21 per cent versus Q4 FY2021
  • Total SG&A expenses in FY2022 declined by 18 per cent versus FY2021

Canopy Growth is a Canada-based cannabis and cannabinoid-based consumer product company.

Canopy Growth Corporation (WEED) is down 14.47 per cent, trading at C$6.09 per share at 12 pm ET.

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