Below are the financial and operational results of Canopy Growth (TSX: WEED, NYSE: CGC) for its fourth quarter of fiscal 2020 ended March 31, 2020. 

About Canopy Growth Corporation

Canopy is a diversified cannabis, hemp, and cannabis device company that sells a line of distinct brands and curated cannabis varieties in dried, oil and softgel capsule forms, as well as medical devices through the Company’s subsidiary, Storz & Bickel GMbH & Co. KG, in over a dozen countries across five continents.

4th Quarter 2020 Financial Review (All numbers are in millions of Canadian dollars and comparative to Q3)

• Net Revenue: decreased 13%
  • Canadian recreational revenue: decreased 28%
    • business-to-business: decreased 31% due to:
      • a decline in flower and pre-roll joints
    • business-to-consumer: decreased 14% due to:
      • the expected off peak seasonal demand decline and
      • the closure of corporate-owned retail stores in response to COVID-19.
    • Dry bud: decreased 29%
    • Oils, softgels and cannabis-infused chocolates and beverages, and cannabis vape products: increased 34%
  • Canadian medical revenue: increased 1%
  • International medical revenue: increased 11% of which
    • Germany cannabis sales: increased 14%
    • Dry bud: increased 7%
    • Oils and softgels: increased 6%
  • Adjusted gross margin: increased to 42% with results impacted by:
    • higher facility utilization and
    • growth in high margin international medical cannabis sales.
• SG&A expenses: increased 17% driven primarily by:
  • a combined $15M increase in General & Administrative and Sales & Marketing expenses.
• Net Loss: Net loss of $1.3B primarily driven by:
  • impairment and restructuring charges,
  • other impairment charges which were primarily identified during our annual impairment testing,
  • and other non-cash fair value changes.
• Adjusted EBITDA: loss increased by 5.2% to $102M driven by:
  • lower sales
  • and higher operating expenses.
• Cash Position: Gross cash balance reduced by 13% to $2.0B reflecting:
  • the EBITDA loss,
  • capital investments,
  • and mergers and acquisitions activities.
• Restructuring and Impairment Costs:
  • had pre-tax restructuring and impairment charges totally $843M.

4th Quarter 2020 Operational Review

• temporarily closed corporate-owned retail stores in mid-March but re-opened 20 stores with reduced hours as well as click & collect ordering;
  • rolled out click & collect to 100% of all Tokyo Smoke and Tweed licensed stores
  • and added same-day delivery for Tokyo Smoke partner stores.
• introduced "Juju Power" 510 batteries and vape cartridges into the Canadian recreational market under the "Tweed" and "Twd." brands.
• introduced "Tokyo Smoke" Luma pod-based vape devices, Luma “Go” pods and Luma “Pause” pods into the Canadian recreational market.
• introduced ready-to-drink beverages, under the "Tweed" and "Houseplant" brands, into the Canadian recreational market.
• launched a line of:
  • "First & Free" CBD topical creams in select states in the U.S. and 
  • "This Works" CBD skin products in the United Kingdom, Germany   and select states in the U.S..
• exercised warrants for approximately C$245 million, representing approximately 5.1% of our issued and outstanding common shares, via an indirect wholly-owned subsidiary of Constellation Brands.
• achieved sales of "This Works" brand products consistent with seasonally strong Q3 2020.
• experienced a decline in "Storz & Bickel" vaporizer revenue due to seasonal decline.
• realized a 20% decline in "BioSteel Sports Nutrition" brand revenue due to an expected seasonal decline and reduction of thirty-party distribution and retail in response to COVID-19.

Stock Performance

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