Canopy Growth Reports Third Quarter Fiscal Year 2024 Financial Results

Published: February 12, 2024

Canopy Growth Reports Third Quarter Fiscal Year 2024 Financial Results

Canopy Growth Corporation announces its financial results for the third quarter ended December 31, 2023. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.


  • Achieved consolidated gross margins of 36% in Q3 FY2024, with Canada cannabis gross margins increasing to 28% in Q3 FY2024, up from (11)% in Q3 FY2023.

  • Excluding the impact of the divestiture of the Canada national retail business in Q3 FY2023, Q3 FY2024 consolidated net revenue grew by 6% year-over-year.  Delivered Q3 FY2024 consolidated net revenue of $79MM representing a decline of 7% year-over-year.

  • Rest-of-World cannabis revenue in Q3 FY2024 increased 81% year-over-year, led by continued strong growth in Australia, return to growth in Europe driven by new products and improved sales execution, and lapping negative revenue impacts in non-core markets during the prior year.

  • Storz & Bickel® net revenue in Q3 FY2024 increased 54% sequentially driven by strong sales of the new VENTY portable vaporizer, traditionally strong seasonal sales, including the most successful Black Friday sales event in the brand’s 20-year history.

  • Free cash flow from continuing operations of $(34)MM in Q3 FY2024, representing a 57% improvement year-over-year.

  • Cash and short-term investments balance of $186MM as at December 31, 2023. Reduced overall debt by $69MM during Q3 FY2024.

  • Management reaffirms expectation to achieve positive Adjusted EBITDA in each business unit exiting FY2024.

“This is the dawn of a new era at Canopy Growth.  We’re singularly focused on cannabis and demonstrating growth across all of our business units.  With our Canopy USA strategy now moving forward, we expect to be the first and only U.S. listed company offering shareholders a unique opportunity to gain exposure to the fastest growing cannabis market in the world,” said David Klein, Chief Executive Officer.

“Our Q3 FY2024 results demonstrate the substantial improvement in profitability and reduction in cash burn compared to the previous year as well as Q2 FY2024. Our right-sized business is consistently delivering profitability improvements as well as sequential growth. These results, paired with our ongoing actions to strengthen Canopy Growth’s balance sheet, reinforce our confidence in continued performance along this path for a sustainable, profitable future,” Judy Hong, Chief Financial Officer.

Third Quarter Fiscal 2024 Financial Summary

(in millions of Canadian
dollars, unaudited)

Net Revenue

Gross margin

gross margin

Net loss from


Free cash



36 %

36 %




vs. Q3 FY2023

(7 %)

3,000 bps

2,700 bps

(2 %)

82 %

57 %

Financial Highlights
  • Canada adult-use cannabis business-to-business revenue increased 9% year-over-year to $23MM in Q3 FY2024 driven by  growth in the large format products of Tweed flower as well as the addition of the Wana® brand edibles to the portfolio.

  • Canadian medical cannabis generated record net revenue in Q3 FY2024, with revenue increasing 11% compared to the prior year primarily attributable to an increase in the average size of medical orders placed by our customers. Canadian medical cannabis revenue increase was due largely to a shift in our customer mix and a larger assortment of cannabis product choices offered to our customers.

  • Canada cannabis segment gross margins improved to 28% in Q3 FY2024, compared to (11)% in Q3 FY2023, driven by lower excess and obsolete inventory charges, lower operating costs resulting from the cost reduction actions taken to date, and the opportunistic use of lower cost inputs.

  • Despite a decrease in revenues compared to Q3 FY2023, Storz & Bickel® net revenue in Q3 FY2024 increased 54% sequentially driven by strong sales of the new VENTY portable vaporizer, traditionally strong seasonal sales, including the brand’s most successful Black Friday sales event to date. Gross margins improved to 51% in Q3 FY2024, compared to 45% in Q3 FY2023, driven primarily by lower input costs and a positive shift in product mix to higher-margin newly launched products.

  • Selling, general and administrative expenses were $54MM in Q3 FY2024, down from $90MM in Q3 FY2023.

  • Operating loss from continuing operations of $60MM in Q3 FY2024, compared to a loss of $113MM in Q3 FY2023. Adjusted EBITDA loss was $9MM in Q3 FY2024, representing an improvement of 82% compared to the $50MM Adjusted EBTIDA loss in Q3 FY2023, the narrowest loss since FY2017, driven primarily by lower operating costs resulting from the cost reduction actions taken to date.
Business Highlights

Demand for quality products driving profitable growth of Canada cannabis business

  • The Company held its ranking of top 3 supplier of cannabis flower4 in British Columbia and added over 900 points of distribution nationally for flower in Q3 FY2024.

  • The Company’s re-introduction of Wana® brand cannabis edibles in Q3 FY2024 has re-established robust distribution nationally and returned distribution to growth in Ontario driven by key accounts. Wana® brand cannabis gummies delivered top 3 and 4 market share in British Columbia and Ontario, respectively.  

Strong demand for proven flower strains is driving growth in our Rest-of-World medical cannabis business

  • Canopy Growth’s Australian medical cannabis business has generated 12 straight quarters of revenue growth.

  • Shipments of proven Canadian strains Kush Mints, Tiger Cake and OG Delux, and increased engagements with medical practitioners contributed to growth in the Australian and German medical cannabis markets in Q3 FY2024.

Strong demand for new Storz & Bickel® Venty portable vaporizer helped drive strong sequential revenue growth

  • Demand for the new Venty vaporizer, a device priced at the top of the range for comparable portable devices, has exceeded expectations, and a second production shift was added to help meet demand. In the critical holiday sales window of December 2023, the Venty vaporizer was Storz & Bickel®‘s best-selling device, selling approximately double the number of the next highest selling device.

  • The Venty vaporizer has been positively reviewed by leading vape and vaporizer-related publications and influencers.5

  • Black Friday sales were the most successful in Storz & Bickel®‘s over 20-year history with device sales increasing 55% over the number of devices sold during the prior year’s Black Friday event.  

Advancing Canopy USA, LLC (“Canopy USA“) strategy with special shareholder meeting scheduled for April 12, 2024

  • The Company expects to file its definitive proxy statement with the U.S. Securities and Exchange Commission (“SEC”) on or about February 13, 20 24 and to host a special meeting (the “Special Meeting”) of the Company’s shareholders (the “Shareholders”) on April 12, 2024. At the Special Meeting, Shareholders will be asked to consider a special resolution authorizing an amendment to its articles of incorporation to, among other things, create a new class of non-voting, non-participating exchangeable shares in the capital of the Company (the “Exchangeable Shares”).

  • Upon creation of the Exchangeable Shares, and Canopy USA’s acquisition of U.S. THC businesses, the Company’s investors are expected to have an opportunity to participate in the U.S. cannabis market through Canopy Growth’s non-controlling interest in Canopy USA.