CANOPY GROWTH REPORTS THIRD QUARTER FISCAL 2022 FINANCIAL RESULTS
Canopy Growth Corporation (TSX:WEED) (NASDAQ:CGC) announced its financial results for the third quarter fiscal 2022 ended December 31, 2021. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
"In the third quarter we actioned to win where it matters - driving record performance in our CPG business from both BioSteel and Storz & Bickel, while beginning to stabilize our Canadian business including maintaining the #1 position in premium flower," David Klein, CEO Canopy stated. "Our continued discipline and focus are expected to fortify Canopy's competitive positioning in Canada as we ambitiously build our U.S. CPG, CBD, and THC strategies."
Third Quarter Fiscal 2022 Financial Summary
- Net revenue of $141 million (US$111.12 million) in Q3 FY2022 was a decline of 8% versus Q3 FY2021. Total global cannabis net revenue of $83 million in Q3 FY2022, represented a decline of 20% over Q3 FY2021. Other consumer products revenue of $58 million in Q3 FY2022, represented an increase of 19% over Q3 FY2021. Excluding the impact from acquired businesses, net revenue declined 17% and global cannabis net revenue declined 34% versus Q3 FY2021.
- Reported gross margin in was 7% as compared to 16% in Q3 FY2021.
- Total SG&A expenses declined by 19% versus Q3 FY2021, driven by year-over-year reductions in general & administrative and research and development expenses partially offset by an increase in sales & marketing expenses.
Net earnings amounted to a loss of $115 million, which is a $714 million improvement versus Q3 FY2021.
- Adjusted EBITDA loss was $67 million, a $1 million improvement versus Q3 FY2021 primarily driven by the reduction in our total SG&A expenses, mostly offset by lower sales and a decline in gross margins.
- Free cash flow was an outflow of $168 million, a 24% increase in outflow versus Q3 FY2021.
"Throughout fiscal 2022, we continued to reduce our operating expenses and capital investments,"Judy Hong, interim CFO stated. "With a renewed sense of urgency, we are focused on achieving profitability in Canada by taking additional steps to simplify our business and optimize our expenses, while making strategic investments in key growth areas."
Price Action
Canopy shares traded 8.97% at $8.38 per share during Wednesday pre-market session.
