Canopy Trims Losses, Continues To Develop U.S. Business
August 13, 2024Canopy Growth shaved its losses in its fiscal first quarter through June, with adjusted EBITDA showing a decline of C$5.3 million ($3.9m), compared with more than C$22 million ($16m) a year earlier. But previous divestitures amid its restructuring and a softening adult-use market in Canada led to a 13% decrease in net revenue to C$66 million ($48m) year-on-year. To combat the challenges, the company launched a considerable number of new products across multiple brands over the past three months, including 7Acres Ultra Jack flower and Tweed Sugar Free Cola.
In the U.S., Canopy completed two-thirds of its acquisition of Wana (Wana Wellness and the Cima Group), with the full acquisition expected to be finalized by the end of the summer. In addition, Canopy launched Wana edibles in New York and Connecticut, and expanded Jetty’s vape line in California. During the first quarter, Canopy exercised its option to purchase the remaining shares of Acreage Holdings, with that deal expected to close during the fiscal first half. That move gives Canopy a foothold in the new Ohio adult-use market, through Acreage’s The Botanist dispensary chain.
“The fundamentals of our business continue to strengthen, and our focus on profitable revenue generation is yielding clear results as we set the stage for growth in the second half of fiscal 2025,” said CEO David Klein.—Shane English
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