New York, November 08, 2024 - PRISM MarketView - Canadian cannabis company, Canopy Growth Corporation (CGC), announced its second quarter financials and posted revenues of C$47.1M which were down 4.3% year-over-year (y/y). This loss is attributed to a (23.7%) y/y decline in its Canadian Adult-use segment. The company’s two other segments offset the Adult-use with Canadian Medical up 15.5% y/y and international markets segment up 12.1%.
Some financial highlights included a 54% y/y improvement to adjusted EBITDA which was primarily driven by the realized benefit of the company’s cost savings program. Free Cash Flow was an outflow of $56MM, representing a 16% y/y improvement, attributed mostly to a reduction in cash interest expenses. Canopy further improved its balance sheet with early prepayment, reducing its senior secured term loan by US$100MM and increased its cash position to $231M from the previous quarter of $195M.
“We delivered a solid second quarter led by strong growth across our Storz & Bickel, Canadian medical, and European cannabis businesses and we are well positioned to accelerate momentum in the second half of our fiscal year. In addition, we remain highly optimistic about the momentum building within Canopy USA as this strategy was uniquely designed to succeed independent of the need for federal legalization.”
David Klein, CEO
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