Canopy Growth Corp (TSX: WEED) reported this morning its financial results for fiscal Q1 2022 ending June 30, 2021, highlighting a net revenue of $136.2 million. This is a drop from Q4 2021’s $148.4 million but an increase from Q1 2021’s $110.4 million.
The quarterly revenue is composed of $73.5 million from the Canadian cannabis business, $19.4 million from the international cannabis market, and $43.3 million from other consumer products.
Gross margin for the quarter ended up at 20%, up from 7% last quarter and 6% last year. Net income also increased this quarter to $390.0 million from net losses of $616.7 million last quarter and $128.3 million last year. This translates to $0.84 earnings per diluted share.
The improvement in net earnings is due to an approximately $601 million gain from changes in non-cash fair value. Considering this and other financial calibrations, adjusted EBITDA for the quarter came in at a loss of $63.6 million compared to last quarter’s $94 million and last year’s $92.2 million.
Canopy Growth’s cash and short-term investments value at the end of the quarter is at $2.1 billion, down from $2.3 billion last quarter. This is in part due to a cash burn that ended the quarter with $559.8 million in cash and cash equivalents from $1.2 billion at the start of the period. A major part of this cash flow change comes from short-term investment purchases valued at $346.6 million. On the other hand, free cash flow ended at an outflow of $186.1 million compared to last year’s outflow of $180.1 million.
The company remains optimistic about achieving a positive adjusted EBITDA during the second half of the fiscal year 2022.
Canopy Growth last traded at $23.96 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.