Proactive Investors - Canopy Growth (TSX:WEED) Corporation (TSX:WEED, NYSE:CGC) shares added almost 8% after the cannabis operator impressed investors with its fiscal fourth quarter earnings, boosted by strength in its international segment and vaporization business Storz & Bickel.
For the quarter ended March 31, 2024, revenue grew 7% year-over-year to C$72.8 million.
Revenue for Canopy's Storz & Bickel business unit was up 43% year-over-year at C$22.2 million, attributed to strong sales of the new Venty portable vaporizer.
International cannabis revenue grew 32% to C$11.6 million.
Canada cannabis net revenue was up 4%, led by a 16% increase in the medical segment.
For the full year, however, revenue was down 11% at C$297.1 million, compared to C$333.3 million for the previous financial year.
Canopy narrowed its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss by 72% year-over-year to a loss of C$59 million, attributed to revenue growth and cost reduction actions.
Its consolidated gross margins increased to 27%, an improvement of 4,600 basis points year-over-year.
David Klein, Canopy CEO, said the company is poised to seize the opportunities presented by regulatory developments in Germany and the US.
“Entering FY2025, Canopy has growing businesses in all of the world’s most attractive cannabis markets, a leading portfolio of high-impact brands, and a rapidly developing US ecosystem,” Klein said.
CFO Judy Hong added that the company has made “remarkable” progress in reducing its expenses, cash burn, and debt during fiscal 2024.
“These efforts have significantly enhanced our financial stability and moved us toward achieving positive consolidated adjusted EBITDA,” Hong said.
“With no material debt maturing until 2026, Canopy is equipped to capitalize on growth opportunities and enhance shareholder value.”
Shares of Canopy Growth added 7.7% at about US$9 post-earnings.