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Canada's Canopy Growth Q2 revenue rises 22%, but slightly misses estimates

By Reuters News


Overview

  • Canadaian cannabis producer's Q2 net revenue rose 22% yr/yr, but slightly missed analyst expectations

  • Adjusted EBITDA loss for Q2 narrowed 6% yr/yr as revenue grew and cost savings took effect

  • International cannabis revenue surged 141% on strong sales in Germany and Poland


Outlook

  • Company expects to reach positive adjusted EBITDA during fiscal 2027

  • Canopy Growth anticipates ongoing momentum from international expansion and cultivation upgrades


Result Drivers

  • INTERNATIONAL GROWTH - 141% increase in international cannabis revenue driven by strong medical cannabis sales in Germany and Poland, as well as entry into the UK and expanded offerings in Australia

  • MTL CANNABIS ACQUISITION - Growth in Canada medical and adult-use cannabis revenue was partly attributed to the acquisition of MTL Cannabis, which increased insured customer numbers and flower sales

  • VAC REIMBURSEMENT RATE - Reduction in Veterans Affairs Canada reimbursement rate for medical cannabis negatively impacted medical cannabis gross margin and partially offset revenue growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Net Revenue

Slight Miss*

C$81.40 mln

C$82.09 mln (6 Analysts)

Q2 Loss Per Share

C$0.10

Q2 Adjusted EBITDA

-C$2.90 mln

Q2 Gross Margin

29.00%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the pharmaceuticals peer group is "buy."

  • Wall Street's median 12-month price target for Canopy Growth Corporation is C$1.60, about 68.4% above its November 5 closing price of C$0.95


Reuters Recommended Reads

  • Nov 3 - Curaleaf Q3 revenue rises 11% on international segment growth

  • Nov 4 - Green Thumb Q3 revenue beats estimates on retail, CPG growth

  • Nov 5 - Canada's Cronos Q3 revenue up 75% on cannabis flower demand in Israel, Germany


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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