Earnings call transcript Q1 2024

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Operator

Good afternoon. My name is Michelle and I will be your conference operator today. I would like to welcome everyone to Canopy Growth’s First Quarter Fiscal Year 2024 Financial Results Conference Call. At this time, all participants are in a listen-only mode.

I would now like to turn the call over to Tyler Burns, Director, Investor Relations. begin. may you Tyler,

Tyler Burns

thank we for Executive have Chief Hong. Klein; and On Officer, us our and Judy Officer, call, Canopy Financial you afternoon joining all today. David Good Growth’s Chief

today, financial results financial first Canopy After our close Growth a announcing for XX, news June ending issued quarter the release XXXX. market’s

be financial website under our statements and on release on been filed EDGAR Investors available tab. and News have SEDAR, and will the

include would I assumptions, during like to statements today. that on you based discussion the will discussion and is and begin, remind this qualified entirety our management’s call issued regarding note end in included we cautionary forward-looking forward-looking this views at are the that of its release Before current the statements by that news

and filed and reports today’s Please results with factors could release review SEDAR on differ cause earnings SEC to projections. that actual various for from the materially Canopy’s

measures are all earnings closest between stated. In their reported to reconciliations is information financial Please measures GAAP dollars, release. in provided any unless addition, Canadian otherwise our in note non-GAAP included that

we as will questions by analysts. ensure we will to and we Judy, take question-and-answer analysts ask To themselves a limit to prepared remarks one get where Following questions session possible, David from as to conduct that we many question.

will to I David. turn over that, the call With

David Klein

first Canopy Tyler. for Good Thanks afternoon, fiscal and joining us quarter results Growth’s thank to discuss for today you ‘XX.

on First, and our BioSteel strong Bickel; today, developments the our the USA Canadian During to Storz of performance business; our four improved simplified topics: brief Finally, line U.S. a for progress Second, encouraging cannabis the call top the asset-light of brands. update and & performance Canopy I’ll key cover the with a cannabis transformation and business; Third,

financial results, Judy remarks, brief and of fiscal will to actions liquidity. quarter taken recently first ‘XX review my the we’ve provide strengthen position review and improve our Following our a

our significant Over sweeping changes made the past and to business. year, we

of brands the streamlined effectively. business sites. consumer retail facilities conflict. enable following operating We building manufacturers, national is outsourced in overhead edibles, speed our the in market, reducing cultivation and roughly more developing two and commitment purpose-built model. model vapes, anchored simplified our We new risks a beverages involved production to these to Collectively, is which contract within accelerating strategy products. in fundamentally complexity resulted while in divested XX% actions to ability We’ve an as eliminate believe the our and reduce and to beloved to This compete our by Our ways. in increased channel cultivation will and to closed deliver this simplified into measurable many results. evidenced footprint headcount. asset-light We’ve to total to and transformation is model a reduction We’ve execute working, focus both, operations us asset-light

Columbia, flower Today, and British our in Ontario are facilities that Kelowna, Kincardine, in producing desire. cultivation the high-quality consumers concurrent, remaining

Our is to effectively infrastructure demand. simplified been matched cultivation has more greatly and our supply

transformation the Our savings with date, of expenses million first to cost a sold $XXX quarter fiscal goods $XX including million of by SG&A reduced and cost has in combined ‘XX. delivered significant

million $XXX to million ‘XX. by end fiscal to the $XXX of this yield expect cost continue to in We transformation savings

While of Growth Canopy we’re progress already pleased with made, not yet to done. our the complete the is work significant transformation

continue adjusted BioSteel. as we to the EBITDA expenses our weeks reduce excluding year, drive in Over investments the next opportunities to ‘XX, of remainder fiscal and positive the to and exiting throughout we’ll on efficiencies drive execute business

‘XX. spend cannabis of quarter to discussing a like of fiscal in Canadian the business I’d Next, the minutes first performance few our

resurgence being brand. third business delivered led straight quarter revenues, our XX% of growing cannabis the by Tweed performance million. stable increasing of the improved This to adult-use sequentially $XX is Our to

quarter, the five SKUs top of in In one performing was Tweed flower fact, Mints Canada. in first Kush the XXg

markets of Alberta, larger strong is Tweed and in Ontario. across country, British for demand Columbia, The the the including

of experience the adult-use to the strains, number flower more X rank As segment XX cannabis has consumers within market, brand total the demand Tweed the Canadian year-over-year. the high-quality elevated places up these moving

As momentum approach Canadian to business, our and ahead we’ll cannabis same we and continue winning Tweed’s the look for apply our brands. year XACRES to the Doja

exciting becoming in portfolio the American our which In we in Another in addition edibles. now a This long-term that step late of is Canadian is Canada. of Wana strategy. development May, cannabis our Canada, for our edibles brands, of the unifying announced Wana leader will significant part Canopy toward North is distribute house

an through registered strategy availability for of Wana for Therapeutics. in the cannabis quarter, with ambitious growth developed brand We’ve patients Spectrum medical starting gummies Wana early the current

strong the more brand’s industry-leading within cannabis the deliver Wana We’re we’re innovation demand, the to And market. working leadership potential already seeing drive Canadian Canadian market. the team in reaffirming also to the with brand’s

the Canada’s Canopy as addition cannabis accretive expect be to EBITDA Wana cement We leading and company. revenue adjusted as of to we edibles

was year. market to quarter, starting consecutive with first fourth increasing its I’ll Canada, ahead in of season. double record brand in in BioSteel business and key due performance channel prior now quarter BioSteel the products speak our more This food, quarter to BioSteel. first our performance revenues, continued summer mass part by XX% the selling drug drive sequentially, delivered in the strong than into of consumer of the the the

in the tightening Costco, I’m become you prominently we’re and sure key the brand focus BioSteel prioritize you’ve U.S., including those markets, grocery In stations, ubiquitous northeast, For southeast and BioSteel’s nationwide. has Canada, geographical that seen stores, to the live of gas central, featured is regions. in that and

sustain significant. this the continues top-line deliver growth, While brand are required record to investments the business to

last As we businesses. Board, the in And remain have decision business, I our engaged of we cannabis expect to together to actively order profitability on the review our a strategic call, including reduce exploring in focused as management is a on sale. a core short drag with our on our outlined

experienced performance to Historically, $XX this growth will vaporizers fall, XX% growth following final of era in new world-leading Turning new the Storz a setting products, Storz gains our the & of cannabis in we’re million to drive & this I’m and grow launch first States has the next vaporizer, preparations year-over-year quarter. brand briefly helped to in Storz Bickel for excited Distribution & Bickel brand. I Bickel. significant share the United revenue to & standard expect the line the vaporizers. that for fully innovative Bickel launch of Storz

continue strategy. like briefly U.S. an expansion speak to I’d Finally, leveraging about which cannabis businesses, our growth, asset-light drive primarily brand to

with this to market’s number Beginning first one brand its their expanded state vape market of the of with offerings its to Jetty decade launching vapes State brought of March. past Building industry. after third of July, California’s this the on certification certified the York Colorado, cannabis in in OCal solventless Indica the solventless variety in state the past leadership California New the and launch is in U.S. product for comparable organic Sativa Jetty a strains. OCal market, a the

Wellness XX to with active are marking to Surterra centers Florida, from brand’s in on territory cannabis medical collaboration across Wana, products in cannabis which are Moving the now or the innovative patients gummies and available in edibles U.S. XXth the Wana premium state Wana Florida, sold. treatment state in infused lineup cannabis of

ecosystem addition well in as the in companies It’s Wana market, is partner including sole Canopy supplier, the commercialization growth New Wana’s these as the to and manufacturer, Maryland, worthwhile adult-use that individual fast-growing Jersey TerrAscend synergies, in brands USA being and collaborative continue becoming opportunities partner legal. new highlighting to which develop strategies, of now

forward listing, TerrAscend, continuing large exchange. the on like working capitalize to of major Speaking the TSX operator a them the to to to on congratulate their opportunity trading on look first We I’d to transformative their which multi-state in support in U.S. success market marks successfully together

In QX summary, already results. simplified demonstrate Canopy’s to is yielding our asset-light that earnings a transformation model

growing. business, -- is stabilizing Our our core and cannabis core

fiscal top has continues have focus as burn assets. with associated reduce us other BioSteel, and leadership, remains American demonstrate record cannabis options monetize we’re to ‘XX. adjusted path exploring to additional our the savings strategic that cannabis line with delivered as in Our to strengthened, businesses, as well achieve growth, execution we cash And and advancing while BioSteel commercial non-core cost our EBITDA such, measures on to a North positive significant put exiting

Ultimately, this to to and over North cannabis $XX asset-light cement We’ll that, we Canopy this an organization. into potential the months. American billion to to our additional remain transformation meet focused the share transformed market, the about more With have we’ve convinced of more over by to further it opportunity, and coming $XX turn Judy. billion actions I’ll

Judy Hong

Thank afternoon, you very everyone. good much, David, and

to discuss and making to balance recapping quarter the we’re I’ll sheet then fiscal our additional outlook balance and I’ll XXXX liquidity. we’ve our of taken I’ll the our the then achieve progress start improve XXXX. by and review sheet delever profitability. results, fiscal the actions including priorities for first balance

results. begin our first ‘XX fiscal quarter Let’s with

across reflected additional growth point inflection our by key end generate the to a track as cost million and of delivered of to of achieve our reductions remain P&L. transformation $XXX QX million all revenue fiscal businesses, cost We undertaken year significant view current results firmly over virtually the improvement past profitability we’ve we across savings year. $XXX on Overall, as business in and

consolidated we last up of revenue QX Looking results, million year. $XXX at financial of is to compared our net X% in delivered which QX,

on except revenue showing & of XX% Excluding were increased basis. QX X% was a XXX% gross businesses, Storz margin of up year-over-year. BioSteel, divestiture, all revenue was which impact net XX%. up retail the year-over-year Drivers BioSteel Bickel growth and improvement with for

on. and QX adding depreciation XX%, relative $XX over back to cash, we EBITDA and loss of an gross a QX approximately was E&O flow fiscal $XX EBITDA I’ll loss $XXX non-cash an later BioSteel, to estimate in in adjusted XX%, BioSteel. gross Excluding margin outflow QX detail BioSteel. ‘XX. excluding improvement to margin of of of non-recurring was attributable We included cash expenses, million was which million, million, which speak items, more over adjusted was few XX% estimate Free was

quarter detail. a to the million, key $XX revenue QX now Canada, Starting like was our of of in sequential a increase. with revenue second more I’d review row in businesses net results

quarter, was business and BXB strong was the down our from up adult-use by flower year, compared to compared but Tweed to led growth products. prior Our X% XX% pre-rolled last

our was year. compared margin, margin and the medical across sales and cash business back and of E&O savings versus adding was cultivations, to Canadian was indirect was Gross COGS costs actions estimated expenses depreciation year The implemented, X% transformation as reduction including and by cost non-cash our plan. increased facility driven gross last part improvement and X% XX%. manufacturing negative cost costs, distribution an direct last

cost further gross in We margins. improvement reductions expect drive additional to

end X exit the Following our of facility Hershey full July. at main of

as ‘XX. CBD Rest in business. cannabis of revenue down fiscal increased a bulk but versus included XX% sales of sale sales as U.S. year’s million Israel, to the QX Last a opportunistic $X.X one-time were well the world year-over-year, XX% crude

geographic mix an post was with margin our business margin shift, to Gross sales offset last reflecting a year’s CBD shift bulk XX%, high-margin U.S. Israel. our improvement by by strategy partially boosted in

cannabis estimated look XX%, when So in margin delivered you at QX. million, margin of and revenue our cash gross total, we an XX% of of business gross $XX in

Turning to U.S. improved sales performance. Storz Bickel. non-cannabis, with saw primarily year-over-year, to starting revenue its growth by return growing in XX% QX driven with S&B &

U.S. impacted challenges by As you XXXX recall, our certain partners. sales fiscal in at part negatively financial distribution in were

resources, several an key expanded year margin sales we’ve of improvement the by U.S. Over to the driven ago, enhanced XX% vaporizers saw driving in a & distribution XX% the months, is gross in U.S. compared this and the S&B Bickel U.S. our course higher and our additional past Storz of presence to effort market. with

product increased benefiting care contributions This at Gross sales from margin line. its remains Works grew from body its healthy year-over-year, XX%. X%s

performance BioSteel. and Let in saw QX, up a more into velocity strong spend by club during me selling ahead by than XXX% this over of believe an from outsized Saw modest increased on revenue QX drove quarter, greater We our mass sponsorship, NHL the show of brand driven driven distribution growth season. million key growth. Canada. BioSteel $XX increased shipments BioSteel channel of food, drug, which minutes awareness couple expected now summer to will

higher costs also expenses SG&A in QX increase its costs of fiscal that margin in costs, aging warehousing by due at repair in inventory, which last as began year. and year, E&O due quarter facility. was manufacturing as higher to AMP certain last Verona destruction product sponsorship to an second of Gross came at and expenses costs, driven saw higher BioSteel maintenance inventory XX%, of the a NHL spend to impacted by negative the compared well the

across As the call, we’ve of to and BioSteel we which improve a the both spend cost reduce number implemented last reduce gross said at the margins AMP expected to coming our in actions quarters. P&L in are

in negative fiscal QX plan, $X subsidy ago. transformation last of progress margin, cost driven our by was business and million path-to-profitability. spend me the million Let million. partially $XX million EBITDA we’re a a speak loss improvement year now making a to reduction year’s million BioSteel’s offset a increase ‘XX by compared lapping gross of from on decline $XX AMP adjusted which $XX the was is The in million $XX payroll $X benefit BioSteel’s to

Looking and compared R&D selling at to $XX a by a marketing, closely, ago. our SG&A G&A expenses expenses more and declined million or XX% combined year

marketing, investments R&D declined selling increased and year-over-year. G&A $XX million in BioSteel, and Excluding by or expenses XX%

acquisition, Our costs driver BioSteel’s the costs $X $X by other million over historical divestiture of million with financials. is of million, biggest related $X the increased and increase restatement to to the of

our and to like cash now review I’d sheet. flow balance

million the $XXX June $XXX at Our cash quarter cash end end. investment short-term reflecting million, net a of quarter March was outflow and from balance

due of an a outflow payments, cash million, cash litigation its outflow accounts in payments. interest sales million including $XXX cash $XX BioSteel $XXX first approximately million in increase also $XX included this working cash of saw and million outflow an included several recur. in quarter growth, the capital to in we restructuring cash operations Breaking outflow million, flow an receivables. was cash to payments including not did QX was increase And non-recurring from expect $XX the related that down costs

operations exit our reduction to be FYXX, as in of cost We cash line completion our by we from the expect with program. BioSteel excluding interest driven flow our roughly expenses

we disposition part an activities, our of closed facilities $XX transformation plan. inflow within -- transformation flow Second, investing business as cash saw from that of from million QX of

financing in asset We proceeds sales of for outflow $XXX of from the $XXX agreement the XXXX, million resulted continue proceeds that an related $XXX expect the lease total of before to secure second Debt in activities pay-down the loan to September Quebec up million senior October and to JV $XX additional termination financing the payments during we end of following million. QX of exited. relates net pay-down of other to the the term million for activity

of improve XX, Subsequent of had June additional quarter-end, Turning a XXXX, $XXX we’ve and We to $XXX as and balance million $X.XXX strengthen settled actions cash debt the sheet, investments, billion. in we full to to taken balance the and liquidity. short-term the total million sheet which $XX the September annual principal amount into million post convertible of $XX notes paying and unsecured and remaining million we XXXX equitize notes equity, in our a July in shareholder $XXX the the into of we’re new exchanging refinancing note, cash. meeting expect to million

secured of We senior this cash reduce loan. of [ph] removed covenant a minimum the payment made $XX to liquidity amount million $XXX million and loan term principal the we for term for under $X.XX and the dollar,

track total of on on generate million will We dollar. term the proceeds XX% also to of which at of a down $XXX remain of to September, $X.XX to be up net end the pay used by loan proceeds

in $XXX total equity, debt short-term balance minimal the is settled decline held actions approximately note Constellation following million estimate that So obligation. debt we with to promissory of will completion the and these by assuming our

strengthen annual our over reduced million additional our interest current to executable a of to by cash expenses And million addition, to to million would months approximately improve expected financial on $XX going coming number $XX continue rates, that that be liquidity. work interest and In the we are to forward. $XX next $XX at position in resulting million savings options are

revenue our reduction we’re run key achieve the and In as on priorities fiscal remainder current to path balance of I’d ‘XX. profitability like cost at to a program. now provide achieving we the Canada for firmly outlook of cannabis, rate

gummies in back addition the our to of both ‘XX. portfolio believe sales into potential of fiscal profitability our provides also half the and upside We Wana that

in expect driven flower back of new Poland and THC Germany, XX world cannabis, supply as fiscal by as performance well growth rest the In we continued improved in Australia of our half in high restore. the of

compared and to & with expected profit is sales to down Storz For Bickel, be seasonality impacted by QX. QX

However, product a and performance by the back the new U.S. on we half in launch the fall in a expect focus the in driven continued of year growth improving

modest to sales expected summer QX, again expected versus compared by to season. to post more sales and QX are patterns be down in normalize we as QX sales selling growth the show velocity Works seasonality. are BioSteel, impacted expect to shipment For QX This

cash XXXX cash our we program. interest fiscal exiting completion cost based flow From momentum a to businesses on standpoint, core expect aligned operation and from our to current our of our excluding reduction business BioSteel be expenses, across

results we demonstrate well with we the in believe QX our as exception of EBITDA we’re underway closing, XXXX target adjusted of to positive that exit So, BioSteel. achieving

and remove working initiatives and the soon as profitability underway improve several flow financial our to and cash actively also sheet are to possible, to our BioSteel toward continue position. drag as strengthen We’re for balance

I This concludes now We’ll analysts. your our take happy to David prepared and take from now questions. Operator, comments. questions are

Operator

[Operator from Please go Cowen. TD Instructions] Your Vivien first come ahead. question will Azer at

Vivien Azer

So, of in today. that distribution be accretive and both that Judy, remarks at mentioned present targets revenues you’re prepared the your that end Wana to David, noted you upside the would your could you earlier And to prepared profitability. agreement reaffirming Wana the remarks

Because So, understand into higher want the economics I a number the on just really, CPG margins. and more not for distribution. than distribution margins scale, work which that’s one, at better just business to are maybe generally little case a that like here, bit how, dig

importantly, risk to you total you’re seems So, from bit. seems have picking thinking think to across And little a And you’re revitalizing strategic of that flower, having are little the it Because the I amount prioritizing brought fair like guys master about success that portfolio? I a are portfolio a brands Wana but a just standpoint, a in bit. master maybe your you categories, guys brand then different want me understand more how the that de-risking approach right? if asserted different of lot portfolio, your to you in so, to brand

Thank get So, so your I’d that. much. on to love you perspective

David Klein

Yes.

So, I’ll start.

Canada, share edibles in a option structure, economics now get reasonable all that the of our right market. through Canada, in is teams the that with of amount. Wana for So, grow actually we distribution our in of as Canada. of driving owner we brand XX the Wana roughly Wana And We result ownership we share a think -- a can will

as it’s So it’s margin distribution not as related well ownership the to just margin, entire distribution. brand

cost to Of course, pay CMO we have manufacture partner. our to to

why from standpoint an a generally we and we just And standpoint from accretive, portfolio. EBITDA it’s margin it growth to it’ll a that’s think our accretive, think ad -- nice dollar standpoint be also from So, it’s a standpoint. will a

if focused I’ll address think Tweed the Canada. on the I surveys because we look brands cannabis actually master first according is because have to at the in we brand Tweed the Canada, in brands Canada, brand best you approach, flower in known revitalizing

quality However, in standpoint. delivered we’ve apply we a growth work the to Tweed. and think strains XACRES strong a quality I market to we flower and really that had brand And a in into the And from of behind brands some saw Doja now do of we’ll that couple lot space.

beverage Talked beverage a as Tweed market. Canada. as well Wana drive perspective, Space about a brand as in Deep brand a from we then continue the beverages edible space in in this as And to

Florida as and like And in thing markets in having well and overall that. Montreal as Colorado. positioning So, Vancouver, markets like in the the Wana then Surterra having like it markets Toronto that their in like we Vivien, we other and is

and positioned the North it but we profitable and as yes, financials revitalize key relates this a really before well that’s And want Wana, to to we’ve know said in some it it’s So, to in just we really disclose markets real U.S. across brand. exposure and feel starts get don’t Canada. that business like a I American

Judy Hong

revenue to the think in And million achieve revenue. at take taken if profitability. we I the been terms just And cost And range I’ve we’ve that a -- profitability of back, I now Canada we we financial a believe the from structure achieve in to $XX we’ve that then quarters three was of step that past a actions position of in what about our to Vivien, Canada, the then was million in we think Canada in is we run standpoint, if rate really achieve that said current this have of row revenue. said the to that where $XX all

Wana we fully terms it’s our upside in an provides that potentially So, we Canadian improving profitability more the in brand, to as We’ll to get in the just there that potential and system is revenue of the color think upside of profit the extent the more range provide revenue, that of Canopy business. in once Canada. to the details

Operator

go Alliance Your at come ahead. will Grey next question Partners. Global from Please Aaron

Aaron Grey

I want bit little international. a to to shift

bit Germany. you’ve want recently more know, and about Australia I up talk but So been bringing Poland, to a

high You little supply. bit the getting mentioned a about flower THC in the

given Some peers talking narcotics. potential country in in uptick big of have the been be to that your going it’s growth about inpatient removed from

there’s So been given markets do opportunity about a think one your your that there on towards? able and that that be of market? take you advantage going what is patient how to to going you reinvigorated look of lot that Thanks. what’s for growth might you of think forward key take you’re So Germany,

David Klein

Yes.

for to the done feel strain GMP our ensure production we’ve clearance we of capacity regulatory Aaron, that and to ability offerings team work we Canada. in And for to had Germany produce added to the can we a good lot -- our well. we about get our at so So, in the market actually July, address that of in significantly And that beginning Germany, right market. sales really that actually strains to

bullish growth we a we’re of out lot So, I it. on think feel Australia. of Again, seeing

of out believe good well. German really can seeing market Poland. some we growth in And good get in as We’re market the the we growth that

Israel feel bit called we bullish of comments, performance into international a year-over-year of It’s basis on pretty the about sale her the as markets. that feel one-off But, in And we muted the year. good business. out because on a Judy little quarter this international last

Operator

Sandler. Please go Lavery question Piper at next ahead. from will Your come Michael

Michael Lavery

to looking It and beat but, our a against to -- where appetite momentum, make more happen? some Just the nice that upfront? investment to wanted And when sense, ability are that that investment to tricky a that better -- found clear give bit. the guess, but it in, it’s is I we If given of appropriate Is might with it’s it. something where BioSteel things I and I things like works a much for kind if expect estimates that that’s the not timing there of year for go the you kind in has to Is and -- wise, or But you that detail able to in through is about lot can into what economics obviously how does XXXX? that. are the been just trajectory that you and a of demand level rest couple stage some know not there’s have fits a into looks give, to the little you’re or this guess got think for you’re normally the related a drill home drove of you’ve a little in sense ramp-up these for that? to of somebody that

David Klein

that’s Michael, Yes. question. fair a

path started there So, that that cannabis quickly addressable It’s a authentic. healthy. like just and on here drag the least clear said in in focus our that drag love consumers sure that sitting on we with a we I consumers, Right? offer market need our that’s is, move going the America, just brand. it consumers to really that -- business probably athletically all portfolio. cannabis North as it’s with experiencing both brand as significantly we’re and coming inspired brand BioSteel becomes can consumers really the to billion as resonates we we and others. simplify on this EBITDA not the and from and and the our we But this It’s BioSteel believe a we’re billion to cannabis flow brand to as that. $XX we’re and from cash have It the team industry with in make we sits that at BioSteel comments, can at that strong in to we business on So, we’re in $XX working point this with not real focused BioSteel my as reduce love Board

Operator

next CIBC. Your Instructions] Please from Zamparo question [Operator go ahead. come will John at

John Zamparo

the remaining And the My the it’s question left. is wide you I fairly think have that a are plan, when factors and wonder, of whether what what’s determine on million you the that’ll get about that. the range the on be or include closer remediation And that to of that or considered is million? brand, range $XXX a BioSteel Does to some cost $XXX on clarification efforts just range end reduction you ex-BioSteel?

Judy Hong

So John. I’ll address it,

the really of part your to address BioSteel. So second this is question, excluding

streamline to our simplify result, Canada $XXX savings just So, remaining fiscal we continuing to million around ensure of and from cost plan the businesses, range are transformation a cost reduction generate well organization, program reduction million we’ve plan, $XXX to really ‘XX, been and that as And have our able significant to year-to-date operations. obviously that the to to cost target. as get is our as the reductions we’ve that across made we

time is phase the of One exit I full we’re And of exiting The really, fully this Hershey, cost -- wider really we’ve of where the our main second kind is the operations. in just in that’s at reason the range exited has July. a campus leaving about point the executed that starting reduction think program before

all the manufacturing old have facility costs and obviously, all to indirect manufacturing on the of over beverage and saving direct production and of -- the moved beverage the costs. We

as the is plan coming think months. reductions appropriate, coming more sure and make we’re cost just we’ll we’ve as from, we details the done understand range we So, that full the we a have in are that good that to enough visibility modeling a job but want to P&L executing of the provide where

Operator

ahead. come will go Canaccord. from question at Please next Your Bottomley Matt

Unidentified Analyst

prepare Hi. different apologies quarterly for is this Kang XXXX, But EBITDA remarks. loss quarter. amount Matt for the EBITDA current guidance on fiscal the reiterated the within the touch if and earlier Thanks I Yewon guess [ph] the for was Bottomley. for missed This I understand on during trying to components that adjusted question. wanted the just to just

adjusted So, continue segments for full positively segments segments’ and amount the is from all of given contributions Thanks. we dimensionalize adjusted the to how that for the the think about should calling of the contributions current each to EBITDA year, for except quarter outlook the BioSteel you these for maybe total to help the rest the us year? could EBITDA

Judy Hong

be can. So, I’ll try as to as I helpful

giving a can I do bit a think I by just that So QX. in of bridge

was remarks loss $XX in attributable to I is that of estimate our about in commented BioSteel. we QX million. XX% loss roughly EBITDA So, adjusted that my

loss if from outlined BioSteel’s basically range. you’re of range basically $XXX loss. or So, we of million you’re roughly cost $XX of somewhere million, the EBITDA that that the remaining the it also to savings I’ve call have around be is -- $XX so adjusted midpoint going million removing at

that positive million completion loss the savings to $XX adjusted to EBITDA, of get programs. will breakeven So expectation cost the our of bridged post all

in EBITDA EBITDA as an excluding would that’s to adjusted you BioSteel remaining positive from exiting So, QX how adjusted what’s bridge FYXX.

Operator

questions, any Klein Mr. remarks. further I the turn final are There will for so no to conference back

David Klein

as products I brands today. of the us our of for your from you rest to Yes. innovative you Thanks outstanding enjoy try again some summer. encourage joining our

available be evening. team Investor questions. good Have Relations will Our additional answer to a

Operator

your to lines. thank this gentlemen, afternoon. for and ask all call you participating would like conference for and your this We disconnect please Ladies does conclude to you

Canopy Growth (CGC) 9 Aug 232024 Q1 Earnings call transcript