E Canopy Growth Q3 Results Reveal Eye-Popping Net Loss Of $829M

Q3 Business & Operational Highlights

(All figures are compared to the previous quarter)

  • Further strengthened competitive positioning in the Canadian recreational market
    • Increased recreational cannabis market share by 30bps to 15.7%
      • Increased flower category market share by 180 bps
      • increased value flower category market share by 310bps to 16.8% 
    • Maintained beverage category market share at 34% in spite of new beverage brands entering the marketplace, retaining the top 3 brands
  • Built further momentum in the U.S. market
    • Increased distribution of its Martha Stewart health and wellness CBD products into 580+ Vitamin Shoppe and Super Supplements retail locations and is now outselling over 94% of all CBD brands in the U.S. in just 4 months since launch
    • Improved distribution and strong consumer pull ensured continued strong growth in its S&B vaporizer products
    • Strengthened direct (TW.com, shopcanopy.com) and third-party ecommerce sales channels.
  • Further streamlined operations and improved organizational focus
    • Ceased operations at a number of production facilities in Canada 
    • Divested its ownership in Canopy Rivers
    • Increased its direct conditional ownership of TerrAscend Corp.
    • Increased its ownership of Vert Mirabel greenhouse

Expected Medium-Term Financial Guidance

  • Net Revenue CAGR of 40%-50% from FY 2022 to FY 2024
  • Adjusted EBITDA to be positive during the second half of FY 2022
  • Adjusted EBITDA Margin of 20% for the full year FY 2024; and
  • Operating Cash Flow for the full year FY 2023 to be positive
  • Free Cash Flow to be positive for the full year FY 2024.

Key drivers underpinning the Company's financial targets include:

  • Growth of 40% in the Canadian legal recreational cannabis market growth in FY 2022 and market share gains;
  • Increase in CAGR of 25%-30% from FY 2022 to FY 2024;
  • Gains in market share in a stable-to-declining Canada medical cannabis market;
  • Growth in international medical cannabis driven by the German market;
  • Growth of the Company's U.S. CBD business, and consumer packaged goods business as a result of new product launches and distribution expansion in the U.S.;
  • Cost savings of $150M - $200M; and
  • Reduction in Capital Expenditures to below $200 million per year in FY 2021 and FY 2022.
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William K. 1 month ago Member's comment

Was that an actual loss, or was $829m an estimate of the profit that should have been made, but instead was less than what was guessed?