LAURIE WEIR
Cannabis producer Canopy Growth says it’s making headway on a turnaround, reporting smaller losses and a nearly 50 per cent reduction in debt as it refocuses on medical cannabis and trims costs.
For the fiscal year ending March 31, 2025, Canopy brought in $269 million in revenue — down 9 per cent from last year — but reduced its net loss from continuing operations to $604 million, an improvement over the $804 million lost the year before. The company also cut its debt to $304 million, down from $597 million.
In Canada, medical cannabis sales grew by 13 per cent in the final quarter of the year, helping offset a slight dip in recreational sales. International markets saw a 35 per cent drop, mainly due to regulatory changes in Poland and slower sales in Australia.
New CEO Luc Mongeau, who took over in January, said the company is focusing on its strengths. “We’ve unified our global medical cannabis operations, streamlined our product lineup, and are investing in the areas where we know we can win,” Mongeau said. “This sharper focus will help us drive meaningful growth and long-term value.”
CFO Judy Hong said the company’s financial discipline is paying off. “We delivered year-over-year improvement in cash flow and Adjusted EBITDA, while strengthening the balance sheet,” she said. “We’re committed to reaching profitability in the near term.”
The company also announced $20 million in new cost-cutting measures, targeting staffing, marketing, and IT spending over the next 12 to 18 months.
Meanwhile, Canopy’s vaporizer division, Storz & Bickel, is preparing to launch a new device later this year to help boost global sales.
Canopy is still posting losses, but executives say it’s on a clearer path forward.
Read more here.
