Canopy Growth has announced its financial results for Q2 2024, showing it has delivered its third consecutive quarter of organic revenue growth.
Canopy Growth’s second quarter has seen impressive revenue growth, bolstered gross margins, and a strategic reduction in debt, which the company says positions it for sustained profitability.
The company unveiled its financial results for the quarter ended September 30, 2023, reporting that its strategic initiatives have strengthened its financial position.
Canopy Growth reported a net revenue of $70 million for Q2 FY2024, showcasing a remarkable 34% consolidated gross margin compared to the 1% reported in the same quarter last year. Canopy has attributed the surge in gross margins to business transformation initiatives undertaken since the beginning of FY2023.
Its net revenue rose by 6%, reaching $39 million in Q2 FY2024, and Canopy has reduced its overall debt by $364 million to $681 million in Q2 FY2024. The company’s total debt reduction amounts to approximately $1 billion since the beginning of FY2023.
CEO David Klein stated: “Canopy Growth has successfully transformed into an asset-light, cannabis-focused company with a stronger balance sheet.
“These actions have resulted in a Company that looks and operates fundamentally different than before, a Canopy Growth that is purpose-built for the markets and geographies of greatest opportunity.”
The company has reported it has focussed on improving the quality of its cannabis flower, leading Canopy to become one of the top three suppliers of cannabis flower to British Columbia in Q2.
Canopy also began shipping new SKUs to international medical markets in Q3 FY2024 following its EU-GMP certification for the Kincardine, Ontario cultivation facility.
In the U.S., Canopy Growth’s THC platform has also demonstrated robust growth, with Wana launching 11 new product SKUs in four existing markets.
The company has stated it now plans to reintroduce the Wana brand in the Canadian adult-use cannabis market and is actively exploring additional structural amendments to facilitate the deconsolidation of Canopy USA from its financial results.
CFO, Judy Hong, added: “Our financial results demonstrated marked improvement this quarter, including significant gross margin gains and reduced cash burn. This enhanced performance, together with a series of completed balance sheet strengthening actions, has solidified our foundation and set the stage for profitable growth ahead.”