Canopy Growth Corporation, the company behind brands like Tweed, reported another loss this quarter of $216.8 million in the third quarter of 2024.
In the three months that ended on December 31, 2023, Canopy reported $78.5 million in net revenue, after paying $11.6 million in taxes. The company also reported a $60 million loss from continued operating costs and a $216.8 net loss.
Despite these losses, Canopy also reported gross margins increasing to 28% in Q3 2024, up from an 11% decline in Q3 fiscal year 2023. Revenue from international sales increased 81% year-over-year, led by sales growth in the Australian and, to a lesser degree, German markets.
Canopy says their Australian medical cannabis business has generated 12 straight quarters of revenue growth. Canopy was one of a handful of producers named by Israel over concerns of Canadian cannabis companies dumping products on their market, but their quarterly report makes no mention of the Israeli market.
Canopy’s ownership of vaporizer company Storz & Bickel meant net revenue in Q3 FY2024, an increase of 54% sequentially, driven by strong sales of the new VENTY portable vaporizer, and traditionally strong seasonal sales. During Canopy Growth’s third quarter fiscal 2024 financial results conference call, Judy Hong, Canopy’s CFO, said that Storz & Bickel sales in Australia were especially robust.
Canopy has free cash flow from continuing operations of $34 million in Q3 2024, a 57% improvement year-over-year, a cash and short-term investments balance of $186 million as of December 31, 2023, and reduced overall debt by $69 million during Q3 2024.
“This is the dawn of a new era at Canopy Growth,” said CEO David Klein, in a press release. “We’re singularly focused on cannabis and demonstrating growth across all of our business units. With our Canopy USA strategy now moving forward, we expect to be the first and only US listed company offering shareholders a unique opportunity to gain exposure to the fastest growing cannabis market in the world.”
Canopy says they held the top three positions for cannabis flower in the BC market. The company also re-introduced its Wana brand of cannabis edibles in Q3 2024 and re-established distribution nationally. Canopy says the Wana brand cannabis gummies delivered the top three and four market shares in British Columbia and Ontario, respectively.