Company: CGC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000950170-25-015839
Chunk: 159

Company: Canopy Growth Corp
Filing Date: 2025-02-07
Form: 10-Q
Item: Item 2
Chunk 159
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 fiscal 2025, or 32% of net revenue, as compared to a gross margin of $28.2 million and gross margin percentage of 36% of net revenue in the third quarter of fiscal 2024. The year-over-year decrease in the gross margin percentage is primarily attributable to costs related to new product launches, increased price competition and indirect costs.

43

We report gross margin and gross margin percentage in four segments: (i) Canada cannabis; (ii) international markets cannabis; (iii) Storz & Bickel; and (iv) This Works. Cost of sales associated with the remainder of our operations are included within "other". The following table presents segmented gross margin and gross margin percentage for the three months ended December 31, 2024 and 2023:

    Three months ended December 31,

    (in thousands of Canadian dollars except where indicated)
    2024

    2023

    $ Change

    % Change

     Canada cannabis segment

     Net revenue
     
    $
    40,728

    $
    40,384

    $
    344

    1
    %

     Cost of goods sold

    30,547

    29,078

    1,469

    5
    %

     Gross margin

    10,181

    11,306

    (1,125
    )

    (10
    %)

     Gross margin percentage

    25
    %

    28
    %

    (300) bps

     International markets cannabis segment

     Revenue
     
    $
    12,024

    $
    10,527

    $
    1,497

    14
    %

     Cost of goods sold

    7,092

    6,335

    757

    12
    %

     Gross margin

    4,932

    4,192

    740

    18
    %

     Gross margin percentage

    41
    %

    40
    %

    100 bps

     Storz & Bickel segment

     Revenue
     
    $
    22,009

    $
    18,453

    $
    3,556

    19
    %

     Cost of goods sold

    13,