Canopy Growth Corporation (CGC) Bundle
A Brief History of Canopy Growth Corporation
Canopy Growth Corporation, a leading player in the cannabis industry, has experienced significant transformations in its operational and financial landscape. As of 2024, the company has undergone several restructuring efforts and strategic realignments to address ongoing challenges and capitalize on market opportunities.
Financial Performance Overview
For the six months ended September 30, 2024, Canopy Growth reported net revenue of $129.2 million, a decrease of 11% compared to $145.9 million in the same period of 2023. The net loss attributable to Canopy Growth was $(260.7) million, compared to a loss of $(158.7) million in the prior year, marking a significant increase of 64%.
| Financial Metrics | 2024 (6 months) | 2023 (6 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenue | $129.2 million | $145.9 million | $(16.7) million | (11%) |
| Net Loss | $(260.7) million | $(158.7) million | $(102.0) million | (64%) |
| Basic Loss per Share | $(3.14) | $(2.50) | $(0.64) | (26%) |
Revenue Segmentation
Canopy Growth's revenue is segmented into various categories, primarily focusing on cannabis sales in Canada and international markets. For the three months ended September 30, 2024, the segmented net revenue was as follows:
| Segment | 2024 (3 months) | 2023 (3 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Canada Cannabis | $37.1 million | $40.3 million | $(3.2) million | (8%) |
| International Markets | $10.1 million | $9.0 million | $1.1 million | 12% |
| Storz & Bickel | $15.9 million | $12.0 million | $3.9 million | 32% |
| This Works | $0 | $7.1 million | $(7.1) million | (100%) |
| Other | $0 | $1.3 million | $(1.3) million | (100%) |
Cash Flow Analysis
For the six months ended September 30, 2024, Canopy Growth reported cash flows as follows:
| Cash Flow Activities | 2024 | 2023 |
|---|---|---|
| Net Cash (Used in) Operating Activities | $(105.6) million | $(227.3) million |
| Net Cash Provided by Investing Activities | $(32.0) million | $202.7 million |
| Net Cash Provided by Financing Activities | $194.7 million | $(407.3) million |
| Net Increase (Decrease) in Cash and Cash Equivalents | $58.1 million | $(434.0) million |
Operational Adjustments and Strategic Initiatives
In response to its financial challenges, Canopy Growth has undertaken significant operational adjustments. The company has focused on reducing costs, evidenced by a 25% decrease in selling, general, and administrative expenses, amounting to $89.7 million for the six months ended September 30, 2024, compared to $120.4 million in 2023.
Outlook and Future Directions
Looking forward, Canopy Growth aims to strengthen its market position through strategic financing initiatives and operational efficiency improvements. The company is actively pursuing various financing options to enhance liquidity and support ongoing operations amidst a challenging market environment.
A Who Owns Canopy Growth Corporation (CGC)
Shareholder Composition
As of November 7, 2024, Canopy Growth Corporation's ownership includes various institutional and individual shareholders as follows:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | Approximately 61,000,000 | 65.0% |
| Individual Investors | Approximately 20,000,000 | 21.0% |
| Insiders (Management and Directors) | Approximately 12,000,000 | 12.0% |
Major Institutional Shareholders
The following institutional investors hold significant stakes in Canopy Growth Corporation:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Greenstar Canada Investment | 28,571,429 | 30.5% |
| CBI Investments | 17,149,925 | 18.3% |
| Other Institutional Investors | 15,000,000 | 16.2% |
Recent Changes in Ownership
Canopy Growth underwent significant ownership restructuring in 2024. This included the following:
- On April 18, 2024, Greenstar and CBI Holdings LLC exchanged all 17,149,925 Canopy Growth common shares for exchangeable shares, reflecting a strategic shift in ownership.
- Following the deconsolidation of Canopy USA on April 30, 2024, Canopy Growth no longer holds a direct interest in U.S. cannabis investments, including Acreage, Wana, Jetty, and TerrAscend.
Equity Structure
As of September 30, 2024, the equity structure of Canopy Growth Corporation is as follows:
| Equity Component | Amount (in CAD) |
|---|---|
| Common Shares Issued | 93,863,960 |
| Exchangeable Shares Issued | 26,261,474 |
| Total Shareholders' Equity | 509,668,000 |
Voting Rights
Canopy Growth holds non-voting shares in Canopy USA, which represents approximately 72.3% of the issued and outstanding shares in Canopy USA on an as-converted basis. However, these shares do not confer voting rights or rights to receive dividends.
Recent Financial Performance
For the three months ended September 30, 2024, Canopy Growth reported the following financial metrics:
| Financial Metric | Amount (in CAD) |
|---|---|
| Net Revenue | 62,991,000 |
| Gross Margin | 35% |
| Net Loss from Continuing Operations | (131,550,000) |
Debt Obligations
As of September 30, 2024, Canopy Growth's total debt outstanding was reported at:
| Debt Type | Amount (in CAD) |
|---|---|
| Total Debt Outstanding | 553,900,000 |
| Long-Term Debt | 415,932,000 |
Canopy Growth Corporation (CGC) Mission Statement
Overview of Canopy Growth's Mission Statement
Canopy Growth Corporation aims to be a leading global cannabis and cannabinoid-based product company. Its mission is to provide consumers with high-quality, innovative products that enhance wellness and improve quality of life.
Key Components of the Mission Statement
- Innovation: Focus on developing cutting-edge cannabis products.
- Quality: Commitment to high standards in product safety and efficacy.
- Consumer-Centric: Understanding and addressing the needs of consumers.
- Sustainability: Incorporating sustainable practices in production and distribution.
Financial Performance Indicators
As of September 30, 2024, Canopy Growth reported the following financial figures:
| Financial Metric | Q2 FY2024 | Q2 FY2023 |
|---|---|---|
| Revenue | $73,958,000 | $82,076,000 |
| Net Revenue | $62,991,000 | $69,595,000 |
| Gross Margin | $21,838,000 | $23,426,000 |
| Operating Loss | ($45,943,000) | ($7,007,000) |
| Net Loss | ($128,293,000) | ($324,800,000) |
| Total Assets | $1,232,348,000 | $1,300,330,000 |
| Total Liabilities | $722,680,000 | $799,823,000 |
| Total Shareholders' Equity | $509,668,000 | $500,507,000 |
Market Position and Growth Strategy
Canopy Growth is focused on strengthening its market position through strategic partnerships and acquisitions, including its expansion into the U.S. market via Canopy USA, LLC. The company continues to adjust its operational strategies to align with market trends and regulatory changes.
Recent Initiatives
- Entered into an exchange agreement in April 2024 with Greenstar to convert debt into equity.
- Completed an ATM program allowing for the sale of up to $250 million in common shares.
- Continued focus on expanding international markets, particularly in Europe and Australia.
Conclusion on Mission Alignment
Canopy Growth's mission is closely aligned with its operational strategies and financial objectives as it navigates the evolving cannabis market landscape. The company's commitment to innovation, consumer satisfaction, and sustainability remains central to its business model.
How Canopy Growth Corporation (CGC) Works
Company Overview
Canopy Growth Corporation (CGC) is a leading cannabis company based in Canada, engaged in the production and sale of cannabis products for both medical and recreational use. The company operates through various segments, including Canadian adult-use cannabis, Canadian medical cannabis, international cannabis markets, and consumer products. As of September 30, 2024, Canopy reported a total revenue of CAD $129.2 million, a decrease from CAD $145.9 million in the same period in 2023, reflecting an 11% decline.
Financial Performance
For the six months ended September 30, 2024, Canopy Growth reported:
- Net revenue: CAD $129,203,000
- Gross margin percentage: 35%
- Net loss from continuing operations: CAD $(260,741,000)
- Basic and diluted loss per share: CAD $(3.14)
In comparison, for the same period in 2023, the figures were:
- Net revenue: CAD $145,853,000
- Gross margin percentage: 25%
- Net loss from continuing operations: CAD $(158,731,000)
- Basic and diluted loss per share: CAD $(2.50)
The significant increase in net loss from continuing operations can be attributed to various factors, including changes in other income (expense), net, and restructuring costs.
Segmented Revenue
Revenue is reported in four main segments:
| Segment | Six Months Ended September 30, 2024 (CAD $) | Six Months Ended September 30, 2023 (CAD $) | Change (CAD $) | % Change |
|---|---|---|---|---|
| Canadian Adult-Use Cannabis | 37,271,000 | 48,358,000 | (11,087,000) | (23%) |
| Canadian Medical Cannabis | 37,484,000 | 31,801,000 | 5,683,000 | 18% |
| International Markets Cannabis | 20,142,000 | 19,139,000 | 1,003,000 | 5% |
| Storz & Bickel | 34,306,000 | 30,064,000 | 4,242,000 | 14% |
| This Works | 0 | 13,091,000 | (13,091,000) | (100%) |
Overall, the total net revenue for the six months ended September 30, 2024, was CAD $129,203,000, compared to CAD $145,853,000 in 2023.
Cost of Goods Sold and Gross Margin
For the six months ended September 30, 2024, the cost of goods sold was CAD $84,334,000, resulting in a gross margin of CAD $44,869,000, reflecting a gross margin percentage of 35%. This is an improvement from the previous year, where the cost of goods sold was CAD $108,665,000, resulting in a gross margin of CAD $37,188,000 and a gross margin percentage of 25%.
Cash Flow Analysis
The following table outlines Canopy Growth's cash flows for the six months ended September 30, 2024, compared to the previous year:
| Cash Flow Category | 2024 (CAD $) | 2023 (CAD $) |
|---|---|---|
| Net cash used in operating activities | (105,632,000) | (227,322,000) |
| Net cash provided by investing activities | (31,993,000) | 202,717,000 |
| Net cash provided by financing activities | 194,717,000 | (407,298,000) |
| Net increase (decrease) in cash and cash equivalents | 58,116,000 | (434,032,000) |
This data indicates a significant reduction in cash used in operating activities year-over-year, reflecting restructuring actions and cost-saving measures.
Debt Position
As of September 30, 2024, Canopy Growth had total debt outstanding of CAD $553.9 million, down from CAD $597.2 million as of March 31, 2024. The principal amount owing was CAD $574.1 million, also a decrease from CAD $622.0 million.
Shareholder Equity
As of September 30, 2024, the total shareholders' equity for Canopy Growth Corporation was CAD $509,668,000, which reflects a slight increase from CAD $500,507,000 as of March 31, 2024.
Adjusted EBITDA
For the six months ended September 30, 2024, Canopy Growth reported an Adjusted EBITDA loss of CAD $(5,507,000), a significant improvement compared to a loss of CAD $(11,856,000) in the same period in 2023.
How Canopy Growth Corporation (CGC) Makes Money
Revenue Segments
Canopy Growth Corporation (CGC) generates revenue through four primary segments:
- Canada cannabis
- International markets cannabis
- Storz & Bickel
- This Works
Financial Performance Overview
As of the six months ended September 30, 2024, Canopy Growth reported the following financial results:
| Metric | 2024 (in thousands CAD) | 2023 (in thousands CAD) | $ Change | % Change |
|---|---|---|---|---|
| Net Revenue | 129,203 | 145,853 | (16,650) | (11%) |
| Cost of Goods Sold | 84,334 | 108,665 | (24,331) | (22%) |
| Gross Margin | 44,869 | 37,188 | 7,681 | 21% |
| Gross Margin Percentage | 35% | 25% | - | +1,000 bps |
Segmented Revenue Analysis
The company's revenue is further segmented as follows for the six months ended September 30, 2024:
| Segment | Revenue (in thousands CAD) | $ Change | % Change |
|---|---|---|---|
| Canada cannabis | 74,755 | (5,404) | (7%) |
| International markets cannabis | 20,142 | 1,003 | 5% |
| Storz & Bickel | 34,306 | 4,242 | 14% |
| This Works | 0 | (13,091) | (100%) |
Canada Cannabis Segment
In the Canada cannabis segment for the six months ended September 30, 2024:
- Canadian adult-use cannabis revenue: 37,271 (down from 48,358, a decrease of (11,087), or (23%))
- Canadian medical cannabis revenue: 37,484 (up from 31,801, an increase of 5,683, or 18%)
International Markets Cannabis Segment
The international markets cannabis segment showed a revenue increase:
- Revenue of 20,142 for the six months ended September 30, 2024 (up from 19,139, an increase of 1,003, or 5%)
Storz & Bickel Segment
Revenue from Storz & Bickel segment increased significantly:
- Revenue of 34,306 for the six months ended September 30, 2024 (up from 30,064, an increase of 4,242, or 14%)
Cost Structure and Gross Margin
For the six months ended September 30, 2024, the cost of goods sold was 84,334, yielding a gross margin of 44,869:
| Segment | Cost of Goods Sold (in thousands CAD) | Gross Margin (in thousands CAD) | Gross Margin Percentage |
|---|---|---|---|
| Canada cannabis | 50,711 | 24,044 | 32% |
| International markets cannabis | 11,777 | 8,365 | 42% |
| Storz & Bickel | 21,846 | 12,460 | 36% |
Net Loss and Adjusted EBITDA
Canopy Growth reported a net loss from continuing operations of (260,741) for the six months ended September 30, 2024, compared to (158,731) in the prior year:
| Metric | 2024 (in thousands CAD) | 2023 (in thousands CAD) | $ Change | % Change |
|---|---|---|---|---|
| Net Loss from Continuing Operations | (260,741) | (158,731) | (102,010) | (64%) |
| Adjusted EBITDA | (12,141) | (11,856) | (285) | (2%) |
Cash Flow and Debt Management
As of September 30, 2024, Canopy Growth had total debt outstanding of 553,900, a decrease from 597,200 as of March 31, 2024. The principal amount owing was 574,100 at September 30, 2024, down from 622,000 at March 31, 2024.
Conclusion of Financial Overview
Canopy Growth continues to navigate a challenging market, focusing on cash flow management and optimizing its operational structure across its diverse revenue streams.
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Resources:
- Canopy Growth Corporation (CGC) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Canopy Growth Corporation (CGC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Canopy Growth Corporation (CGC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.