Canopy’s net revenue increased 7%, but concerns about operations remain

| Sarah Clark

Canopy Growth Corporation reports $72.8 million in net revenue in Q4 2024 and a net loss from continuing operations in fiscal 2024 of $483.7 million as part of its newest quarterly and annual report. 

The Canadian cannabis company says its net loss in Q4 2024 for continuing operations was $94.7 million. In the same period, it brought in $83.2 million in revenue, accumulating $10.4 million in excise taxes. 

Year-over-year, the company’s net revenue declined 11% compared to 2023. Its loss of $483.7 million from continuing operations was down from a loss of $3.1 billion in fiscal 2023. It brought in $343.9 million in revenue in fiscal year 2024, with $46.8 million going to excise.

As of March 31, 2024, the company had cash and cash equivalents of $170.3 million and short-term investments of $33.2 million.

In the past, Canopy has identified conditions and events that it says “raised substantial doubt about our ability to continue as a going concern” and noted they “ may not be able to achieve or maintain profitability and may continue to incur losses in the future.”

Canopy’s Canadian cannabis cultivation operations include a greenhouse facility in Kincardine, Ontario and a Kelowna, British Columbia facility. The Kincardine facility received EU GMP certification in 2023

It also operates production for cannabis oil and softgel encapsulation, pre-rolls (infused and non-infused), and hash production, which is primarily completed at its newly-consolidated Smiths Falls, Ontario facility. 

For the year ended March 31, 2024, Canopy’s Canadian cannabis operations brought in nearly $153.7 million in revenue—$92.4 million from B2B sales and $61.3 million in Canadian medical cannabis sales. 

It also brought in $41.3 million in international sales, $70.7 million in sales from vaporizer company Storz & Bickel, and $21.3 million from This Works, a wellness brand it sold in late 2023. Its net revenue for fiscal year 2024 was $297.1 million, down from $333.3 in the previous year.

Canopy’s medical sales increased 10% compared to the previous year, wile net revenue from Storz & Bickel increased 9%, and international sales increased 10%. Revenue from the company’s business-to-consumer channel was zero in fiscal 2024, as compared to $36.2 million in fiscal 2023 following the sale of all of Canopy’s retail interests. 

The company says its priority international markets include medical cannabis in Australia and Europe, oil and extract products under the Spectrum Therapeutics and Canopy Medical brands, as well as the Storz & Bickel line of medically approved vaporizers in Australia.

“In Fiscal 2024, we fortified Canopy’s foundation for future growth,” says David Klein, Chief Executive Officer. “With a resolute focus on cannabis, we have momentum and are poised to seize the opportunity presented by continued regulatory developments in Germany and the United States. Entering FY2025, Canopy has growing businesses in all of the world’s most attractive cannabis markets, a leading portfolio of high-impact brands, and a rapidly developing U.S. ecosystem.”