Canopy Growth Corporation (NASDAQ: CGC) reported its financial results for the fourth quarter and fiscal year ended March 31, 2022. Fourth-quarter net revenue dropped 25% to $112 million versus the same time period in 2021. Global cannabis net revenue dropped 35% to $66 million in the fourth quarter versus the same time period in 2021. Canopy said that excluding the impact from acquired businesses and divestiture of C3, net revenue declined 26% and global cannabis net revenue declined 38% versus the fiscal fourth quarter in 2021.
Canopy reported a net loss in the fourth quarter of $579 million, which is a $38 million improvement over last year driven primarily by non-cash fair value changes, partially offset by higher non-cash asset impairment and restructuring charges.
Looking ahead Canopy said it expects to be Adjusted EBITDA positive in fiscal year 2024 excluding investments in BioSteel and U.S. THC.
For the full fiscal year Canopy reported net revenue dropped 5% to $520 million versus the fiscal year 2021. Total global cannabis net revenue of $337 million in 2022, represented a decline of 11% over 2021. Other consumer products revenue of $183 million in FY2022, represented an increase of 9% over FY2021. Excluding the impact from acquired businesses and divestiture of C3, net revenue declined 9% and global cannabis net revenue declined 19% versus FY2021.
Canopy delivered a net loss for the year of $320 million, which is a $1,350 million improvement over 2021, driven primarily by non-cash fair value changes, lower operating expenses, including lower non-cash asset impairment and restructuring charges, partially offset by lower gross margins.
CEO David Klein said, “Canopy Growth is building the industry’s leading portfolio of premium brands across North America. We’ve taken concrete steps to advance this ambition by strengthening our positioning in Canada, and further bolstering our U.S. THC ecosystem through the addition of two high-performance brands in Wana Brands and Jetty Extracts. In the fiscal year ahead, we will remain focused on growing our market share in the key segments that will drive profitable growth and continuing to scale our premium brands across North America.”
In Canada, adult-use B2B net sales decreased 40% over the prior-year period primarily due to the continued insufficient supply of flower products with in-demand attributes and continued price compression, particularly in the value-priced dried flower category. These factors were partially offset by contributions from the acquisitions of Ace Valley and Supreme Cannabis.
CFO Judy Hong said, “Achieving profitability is critical and we have undertaken additional initiatives to streamline and drive efficiencies for our global cannabis business. In FY2023, we are focused on executing our path to profitability in Canada, while we continue to invest in high potential opportunities – particularly in BioSteel, and further developing our U.S. THC ecosystem, which we believe remains significantly under-appreciated by the market.”