Canopy Growth Corporation (NASDAQ:CGC) (TSX:WEED) released its financial results for the first quarter ended June 30, 2022, revealing net revenue of CA$110 million ($85.36 million) in Q1 FY2023 declined 19% versus Q1 FY2022.
Q1 Fiscal 2023 Financial Highlights
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Q1 FY2023 net revenue was flat compared to Q4 FY2022.
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International medical cannabis net revenue approximately doubled versus Q1 FY2022 driven primarily by strong sales in Israel and Australia.
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Record BioSteel revenues in Q1 FY2023 increased 169% versus Q1 FY2022.
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Reported gross margin in Q1 FY2023 was (1%) as compared to 20% in Q1 FY2022.
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Total SG&A expenses in Q1 FY2023 declined by 8% versus Q1 FY2022, driven by year-over-year reductions in general & administrative and research and development expenses, offset by increases in sales and marketing.
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Net loss in Q1 FY2023 was CA$2,088 million, which is a CA$2,478 million increase in the net loss versus Q1 FY2022, driven primarily by the non-cash CA$1,725 million impairment in goodwill, and non-cash fair value changes.
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Adjusted EBITDA loss in Q1 FY2023 was CA$75 million, an CA$11 million increase in adjusted EBITDA loss versus Q1 FY2022 primarily driven by the decline in gross margin, partially offset by the reduction in our total SG&A expenses.
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Cash and short-term investments amounted to CA$1.2 billion at June 30, 2022, representing a decrease of CA$0.2 billion from CA$1.4 billion at March 31, 2022.
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Cost reduction program on track with operating expenses in Q1 FY2023 decreasing by 13% versus Q1 FY2022.
David Klein, CEO sated, "Through advancements in our North American brand led strategy we delivered a record quarter from BioSteel and maintained #1 share in the premium flower and pre-rolled joint segment, while driving growth of our premium Doja and mainstream Tweed brands. As our U.S. THC ecosystem continues to strengthen with Acreage operating in the recreational cannabis market in New Jersey, along with the expansion of Wana across North America, we remain focused on delivering a robust pipeline of innovation aligned to what consumers are looking for – premium, infused, and ready to enjoy."
Photo: Benzinga; Sources: courtesy of Kindel Media via Pexels
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