Canopy Growth Corporation WEED CGC released its Q2 FY2024 financial results late Thursday.
Canopy Growth Q2 FY2024 Results
- Net Revenue: Canopy Growth reported net revenue of $70 million, showcasing significant YoY growth.
- Gross Profits and Margin: The company achieved a consolidated gross margin of 34% in Q2 FY2024, a substantial turnaround from (1%) in Q2 FY2023. Canadian cannabis gross margins also improved to 36%.
- Cost Reduction: The company reported an additional cost reduction of $54 million in Q2 FY2024, bringing the total reduction to $226 million since the beginning of FY2023. Canopy Growth targets a cost reduction of $270 million to $300 million by the end of FY2024.
- Debt Reduction: The company reduced overall debt by $364 million to $681 million in Q2 FY2024, resulting in a total debt reduction of approximately $1 billion since the start of FY2023.
- Adjusted EBITDA: Adjusted EBITDA loss improved to $12 million in Q2 FY2024, compared to a loss of $56 million in Q2 FY2023.
Improved Margins Amidst EBITDA Challenges
Canopy Growth’s Q2 FY2024 financial results are promising, with improved margins and reduced debt.
However, the company still operates at a loss, with an adjusted EBITDA loss of $12 million.
The focus on international expansion and product launches in the U.S. THC platform indicates a positive growth trajectory that may attract investor interest.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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