Canopy Growth Corporation · TSX:WEED
Canopy Growth — Investor Presentation (November 2024)
25 slides from Canopy Growth's investor presentation, November 2024
Slide 1: Canopy Growth Investor Presentation
Canopy Growth Investor Presentation November 2024
Slide 2: Disclaimers and Cautionary Statements (1/5)
DISCLAIMERS AND CAUTIONARY STATEMENTS Forward-Looking Information (1/5) Unless otherwise noted or the context indicates otherwise, references in this Presentation to the “Company,” “Canopy Growth,” “we,” “us” and “our” refer to Canopy Growth Corporation and its direct and indirect wholly-owned subsi
Slide 3: Disclaimers and Cautionary Statements (2/5)
DISCLAIMERS AND CAUTIONARY STATEMENTS Forward-Looking Information (2/5) pursuant to the exercise of the option to acquire Jetty; the issuance of additional common shares of the Company (each whole share) to satisfy the payments to eligible participants to the existing tax receivable bonus plans of H
Slide 4: Disclaimers and Cautionary Statements (3/5)
DISCLAIMERS AND CAUTIONARY STATEMENTS Forward-Looking Information (3/5) Certain of the forward-looking statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research
Slide 5: Disclaimers and Cautionary Statements (4/5)
DISCLAIMERS AND CAUTIONARY STATEMENTS Forward-Looking Information (4/5) risks relating to our ability to refinance debt as and when required on terms favorable to us and to comply with covenants contained in our debt facilities and debt instruments; risks associated with jointly owned investments; o
Slide 6: Disclaimers and Cautionary Statements (5/5)
DISCLAIMERS AND CAUTIONARY STATEMENTS Forward-Looking Information (5/5) business strategies, growth opportunities and expected investment; counterparty risks and liquidity risks that may impact our ability to obtain loans and other credit facilities on favorable terms; the potential effects of judic
Slide 7: Disclaimers and Cautionary Statements
DISCLAIMERS AND CAUTIONARY STATEMENTS All financial information in this Presentation is reported in Canadian dollars unless otherwise indicated. Website References References to information included on, or accessible through, websites do not constitute incorporation by reference of the information c
Slide 8: Non-GAAP Measures
NON-GAAP MEASURES “Adjusted Gross Margin” and “Adjusted Gross Margin Percentage” are non-GAAP measures used by management that are not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that Adjusted Gross Margin presents meaningful a
Slide 9: Canopy Growth: Positioned for sustainable cannabis market leadership
canopy Growth: Positioned for sustainable cannabis market leadership Cannabis centered Dedication to unleashing the power of cannabis in key markets Brand & Consumer-led Industry-leading brands and products rooted in consumer preferences Global reach with A $65B CAD market opportunity by 20271 North
Slide 10: Cannabis centered: Delivering the Benefits of Cannabis to consumers and Patients Globally
Cannabis centered: Delivering the Benefits of Cannabis to consumers and Patients Globally Canopy Growth is dedicated to being a leader in the cannabis sector with disciplined and measured investment in emerging markets Core Canada: International: Storz & Bickel: Leading Investment Medical + Adult-Us
Slide 11: Global Opportunity: A $65B Cannabis Market Opportunity by 2027
Global Opportunity: A $65b CANNABIS MARKET OPPORTUNITY BY 2027 1 CANADA ADULT-USE + MEDICAL CANNABIS INTERNATIONAL CANNABIS MARKET SIZE U.S. ADULT-USE + MEDICAL CANNABIS MARKET SIZE (2023 TO 2027), $CAD BB1 MARKET SIZE (2023 TO 2027), $CAD BB1 (2023 TO 2027), $CAD BB1 1.2 6.3 6.1 1.0 58.1 54.0 5.9 0
Slide 12: Canada Cannabis
CANADA CANNABIS • Canada cannabis net revenue was $37MM in the second • quarter ended September 30, 2024 ("Q2 FY2025"), representing a decrease of 8% compared to the second quarter ended September 30, 2023 ("Q2 FY2024"). While Canada medical cannabis net revenue increased 16% over Q2 FY2024, Canada
Slide 13: International Markets
INTERNATIONAL MARKETS • International Markets net revenue was $10MM in Q2 FY2025, representing an increase of 12% over Q2 FY2024, with strong growth in Poland and Germany partially offset by a decline in Australia. • International Markets cannabis gross margins increased 1700 basis points (“bps”) to
Slide 14: Storz & Bickel
STORZ & BICKEL ® • Storz & Bickel delivered net revenue in Q2 FY2025 of $16MM, representing a 32% increase over Q2 FY2024 driven primarily by strong growth in Germany following regulatory reform, significant improvement in U.S. sales and the sell through of the remaining inventory of the Mighty devi
Slide 15: Canopy USA: Leading Premium-Focused Brand Powerhouse
Canopy USA : Leading Premium-Focused Brand Powerhouse 1 WANA2 - gummies Jetty3 - extracts ACREAGE4 - MSO TERRASCEND5 - MSO An innovative North American Authentic vape experience and Vertical integration from Vertical integration in in PA, NJ, cannabis edibles brand award-winning technology cultivati
Slide 16: Q2 FY2025 Financial Results
Q2 FY2025 FINANCIAL RESULTS 16
Slide 17: Q2 FY2025 Key Financial Highlights
Q2 FY2025 KEY FINANCIAL HIGHLIGHTS (CDN in vs. • Net revenue in Q2 FY2025 decreased 9% compared to Q2 FY2024. Excluding net revenue from businesses divested during the twelve months ended millions) Q2 FY2025 Q2 FY2024 March 31, 2024, net revenue increased 3%. Net Revenue $63.0 (9%) • Consolidated gr
Slide 18: Revenue Performance by Channel
REVENUE PERFORMANCE BY CHANNEL 1 vs. (in millions of Canadian dollars, unaudited) Q2 FY2025 Q2 FY2024 Canada Adult Cannabis Net Revenue Business-to-business2 $18.4 (24%) Canada Medical Cannabis Net Revenue3 $18.7 16% $37.1 (8%) International Markets cannabis4 $10.0 12% Storz & Bickel $15.9 32% Other
Slide 19: Gross Margin Performance
GROSS MARGIN PERFORMANCE Drivers of Q2 FY2025 Gross Margin Year-over-Year Change By Consolidated Gross Margin Performance Reported Segment Consolidated Canada Cannabis (-) The decline in Canada Cannabis segment, primarily Gross Margin 40% Gross Margin attributable to lower adult-use sales partially
Slide 20: Free Cash Flow and Debt
FREE CASH FLOW AND DEBT Free Cash Flow1 Total Debt Balance ($CAD’MM) ($CAD’MM) - Q2 FY24 Q2 FY25 800 700 681 (10) 612 597 (20) 600 561 554 500 (30) 400 (40) 300 (50) 200 (60) (56) 100 (70) (67) - Q2 FY24 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Free cash flow from continuing operations of Red
Slide 21: Appendix
APPENDIX 21
Slide 22: Adjusted Gross Margin (Non-GAAP) Reconciliation
ADJUSTED GROSS MARGIN 1 (NON-GAAP) RECONCILIATION 22
Slide 23: Adjusted EBITDA (Non-GAAP) Reconciliation
ADJUSTED EBITDA 1 (NON-GAAP) RECONCILIATION 23
Slide 24: Free Cash Flow (Non-GAAP) Reconciliation
FREE CASH FLOW 1 (NON-GAAP) RECONCILIATION 24
Slide 25: Thank You
THANK YOU 25
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