Q1 2025 Canopy Growth Corp Earnings Call Transcript
Key Points
- Canopy Growth Corp (CGC) achieved a key profitability milestone with all business units delivering profitable quarterly adjusted EBITDA for the first time.
- Significant reduction in overall cost of goods sold by 31% and SG&A expenses by 24% year-over-year.
- Canadian medical business delivered its sixth consecutive quarter of growth and record top line.
- Gross margins improved significantly, with consolidated gross margins up to 35% in Q1 from 18% last year.
- Storz & Bickel posted revenue growth of over 100% in Germany, offsetting declines in other regions.
- Consolidated net revenue decreased by 13% year-over-year, or 3% excluding the impact of divested businesses.
- Adult-use business in Canada saw a 22% decline in revenue due to supply constraints and lower fulfillment by CMO partners.
- Free cash flow was an outflow of $56 million, although this was an improvement compared to the previous year.
- International markets cannabis net revenue was down 1% compared to the previous year, with declines in Australia and US CBD sales.
- Acreage's revenue and EBITDA declined in the first half of calendar 2024 due to credit challenges.
Good morning. My name is Joelle . I will be your conference operator today. I would like to welcome you to Canopy Growth's first quarter fiscal 2025, financial results conference call. (Operator Instructions).
I will now turn the call over to Tyler Burns, Director of Investor Relations. Tyler, you may begin the conference.
Good morning, and thank you for joining us. On our call today, we have Canopy Growth's Chief Executive Officer, David Klein and Chief Financial Officer, Judy Hong.
Before financial markets opened today, Canopy Growth issued a news release announcing the financial results for our first quarter fiscal year 2025 ended June 30, 2024. The news release and financial statements have been filed on EDGAR and SEDAR and will be available on our website under the Investors tab.
Before we begin, I would like to remind you that our discussion during the call will include forward-looking statements that are based on management's current views and assumptions and that this
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