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Canopy Growth Corporation (CGC-5.48%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net revenue to $62,991,000 from $69,595,000 in the same quarter the previous year. The decrease is attributed to lower sales volumes in the Canadian adult-use cannabis market.
Cost of goods sold for the quarter was $41,153,000, representing 65% of net revenue, compared to 66% in the same quarter of the previous year. The slight improvement in the cost ratio is due to a lower overall cost structure.
The company reported a gross margin of $21,838,000 for the quarter, compared to $23,426,000 in the previous year, with the decline attributed to decreased sales.
Selling, general, and administrative expenses decreased to $41,730,000 from $57,611,000, primarily due to cost savings from restructuring actions and the divestiture of This Works.
Net loss from continuing operations for the quarter was $131,550,000, compared to a net loss of $148,162,000 in the previous year. The improvement is attributed to reduced operating expenses.
Cash used in operating activities was $105,632,000, while cash used in investing and financing activities was $31,993,000 and $194,717,000, respectively.
Canopy Growth had cash and cash equivalents of $228,416,000 as of September 30, 2024. The company continues to evaluate strategies to improve its liquidity position, including potential equity and debt financing.
The filing also details the deconsolidation of Canopy USA, resulting in a non-controlling interest, and the impact of various strategic transactions on the company's financial position.
The company anticipates ongoing challenges in the Canadian adult-use market but remains focused on cost-saving initiatives and strategic realignments to improve financial performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Canopy Growth Corporation quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.