Canopy Growth Corp (CGC) 2023 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen. My name is Michelle, and I will be your conference operator today. I would like to welcome everyone to Canopy Growth's Fourth Quarter and Fiscal Year 2023 Financial Results Conference Call. (Operator Instructions) I would now like to turn the call over to Tyler Burns, Director, Investor Relations. Tyler, you may begin the conference.

女士們、先生們，下午好。我叫米歇爾，今天我將擔任你們的會議操作員。我歡迎大家參加 Canopy Growth 第四季度和 2023 財年財務業績電話會議。 （操作員說明）我現在想將電話轉給投資者關係總監 Tyler Burns。泰勒，你可以開始會議了。

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

謝謝你，米歇爾。下午好，感謝大家今天加入我們。 Canopy Growth 首席執行官 David Klein 和首席財務官 Judy Hong 出席了我們的電話會議。

After financial markets closed today, Canopy Growth issued a news release announcing the financial results for our fourth quarter and fiscal year ended March 31, 2023. In addition, we filed our comprehensive annual report on Form 10-K for the fiscal years ended March 31, 2023 and 2022, which contains our audited financial statements for the fiscal year ended March 31, 2023, as well as restatements of the following previously filed periods.

今天金融市場收盤後，Canopy Growth 發布新聞稿，宣布截至 2023 年 3 月 31 日的第四季度和財年的財務業績。此外，我們還提交了截至 3 月 31 日的財年的 10-K 表格綜合年度報告、2023 年和 2022 年，其中包含我們截至 2023 年 3 月 31 日的財政年度經審計的財務報表，以及以下先前提交期間的重述。

Audited consolidated financial statements for the fiscal year ended March 31, 2022, originally included our annual report on Form 10-K for the fiscal year ended March 31, 2022, and audited consolidated financial -- unaudited consolidated financial statements for the quarterly period ended June 30, 2022, September 30, 2022, and December 31, 2022, originally included in our quarterly reports on Form 10-Q for such quarterly periods.

截至 2022 年 3 月 31 日的財政年度經審計的合併財務報表，最初包括截至 2022 年 3 月 31 日的財政年度的 10-K 表格年度報告，以及截至 6 月的季度的經審計綜合財務報表 - 未經審計的綜合財務報表2022 年 12 月 30 日、2022 年 9 月 30 日和 2022 年 12 月 31 日，最初包含在我們的 10-Q 表格季度報告中。

The news release and financial statements are available on our website and under the investor tab and have been filed on EDGAR and SEDAR.

新聞稿和財務報表可在我們的網站和投資者選項卡下獲取，並已在 EDGAR 和 SEDAR 上備案。

Before we begin, I would like to remind you that our discussion during the call will include forward-looking statements that are based on management's current views and assumptions and that this discussion is qualified in its entirety by the cautionary note regarding forward-looking statements included at the end of the news release issued today. Please review today's earnings release and Canopy's reports filed with the SEC and on SEDAR for various factors that could cause actual results to differ materially from projections.

在我們開始之前，我想提醒您，我們在電話會議期間的討論將包括基於管理層當前觀點和假設的前瞻性陳述，並且本次討論的整體內容受到有關前瞻性陳述的警告說明的限制。在今天發布的新聞稿的末尾。請查看今天的收益報告以及 Canopy 向 SEC 和 SEDAR 提交的報告，了解可能導致實際結果與預測存在重大差異的各種因素。

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

此外，任何非公認會計準則衡量標準與其最接近的公認會計準則衡量標準之間的調節都包含在我們的收益發布中。請注意，除非另有說明，所有財務信息均以加元提供。

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

在大衛和朱迪準備好發言之後，我們將舉行問答會議，回答分析師的問題。為了確保我們能夠回答盡可能多的問題，我們要求分析師只回答一個問題。

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

這樣，我就把電話轉給大衛。

Thanks, Tyler. Good afternoon, and thank you for joining us. I'd like to acknowledge that today's call is taking place later than originally planned and I'm appreciative of the collective patience and flexibility of all the attendees on this call this afternoon.

謝謝，泰勒。下午好，感謝您加入我們。我想承認，今天的電話會議比原計劃晚了，我很感謝所有與會者在今天下午的電話會議上表現出的集體耐心和靈活性。

During the call today, I'll cover 4 key topics. First, the progress of our transformation plan and the performance of our Canadian cannabis business in fiscal '23. Second, addressing the BioSteel review and our strategy to accelerate the BioSteel business. Third, an update on Canopy USA and the progress on entering the U.S. cannabis market. And finally, the path forward for fiscal '24.

在今天的電話會議中，我將討論 4 個關鍵主題。首先是我們轉型計劃的進展以及我們23財年加拿大大麻業務的表現。其次，解決 BioSteel 審查和我們加速 BioSteel 業務的戰略。第三，Canopy USA 的最新情況以及進入美國大麻市場的進展。最後是 24 財年的前進道路。

Following my remarks, Judy will provide a brief review of our fourth quarter and fiscal '23 results and share an update on our path to profitability. She'll also discuss our balance sheet and the actions we are taking to strengthen our financial position and improve liquidity.

在我發言之後，朱迪將簡要回顧我們第四季度和 23 財年的業績，並分享我們盈利之路的最新情況。她還將討論我們的資產負債表以及我們為加強財務狀況和改善流動性而採取的行動。

Fiscal '23 was a challenging yet transformative year marked by substantive change. The Canadian cannabis industry continued to be challenged by systemic regulatory issues, a continued battle with the illicit market and delays in government action on both sides of the border. And internally at Canopy, we faced executional challenges as we transitioned our genetic strategy and cultivation practices, which led to delays in achieving commercial scale. I'm proud to say that we're now delivering consistent quality as evidenced by consumer demand for the iconic Tweed brand.

23 財年是充滿挑戰但又充滿變革的一年，發生了實質性變化。加拿大大麻產業繼續受到系統性監管問題、與非法市場的持續鬥爭以及邊境兩側政府行動拖延的挑戰。在 Canopy 內部，我們在轉變遺傳策略和栽培實踐時面臨著執行方面的挑戰，這導致了商業規模實現的延遲。我很自豪地說，我們現在提供始終如一的品質，消費者對標誌性 Tweed 品牌的需求就證明了這一點。

And we've taken the necessary actions to simplify our business by undertaking a complete transformation through the following initiatives: The full divestiture of our national retail operations, exiting cultivation in Mirabel and Smiths Falls, moving post-harvest manufacturing to our former beverage building in Smiths Falls, adopting a flexible third-party sourcing model for cannabis beverages, edibles, base and extracts and reducing head count across the business with approximately 1,200 positions eliminated. Our team has worked diligently over the past fiscal year to complete the majority of these initiatives on or ahead of schedule.

我們採取了必要的行動，通過以下舉措進行徹底轉型，以簡化我們的業務：全面剝離我們的全國零售業務，退出米拉貝爾和史密斯瀑布的種植業，將收穫後製造轉移到我們以前的飲料大樓。 Smiths Falls，對大麻飲料、食品、基質和提取物採用靈活的第三方採購模式，並減少了整個業務的員工人數，裁減了約 1,200 個職位。我們的團隊在過去的財年中辛勤工作，按時或提前完成了大部分計劃。

A transformation of this magnitude takes time to demonstrate its full results, but we're already seeing effects of our actions with SG&A expenses in COGS already delivering a combined $125 million through the end of fiscal '23. We expect to reduce overall costs by $240 million to $310 million in total by the end of fiscal '24. Through continued discipline and stable commercial performance in Canada, along with further simplification of our business, we're on a path to realizing profitability.

如此大規模的轉型需要時間來展示其全部成果，但我們已經看到了我們行動的效果，截至 23 財年末，銷售成本中的 SG&A 支出已達到 1.25 億美元。我們預計到 24 財年末，總體成本將減少 2.4 億至 3.1 億美元。通過加拿大持續的紀律和穩定的商業業績，以及我們業務的進一步簡化，我們正在實現盈利。

I'll now address the BioSteel review. As we disclosed earlier this spring, during the preparation of our financial statements for our 2023 Form 10-K, we identified certain trends in the booking of our sales for our BioSteel business unit. With the oversight from the Audit Committee, we launched an internal review together with independent external counsel and forensic accountants.

我現在將討論 BioSteel 審查。正如我們今年春天早些時候披露的那樣，在準備 2023 年 10-K 表格的財務報表期間，我們發現了 BioSteel 業務部門銷售記錄的某些趨勢。在審計委員會的監督下，我們與獨立外部顧問和法務會計師一起啟動了內部審查。

Based on the results of the review, we'll be implementing several remedial actions to strengthen our controls for the BioSteel business, which are outlined in the 10-K. We felt it was important to act swiftly to provide stability to the business at this pivotal time. To this effect, we have exited several members of the BioSteel leadership team and are considering all legal remedies available to us, including litigation to recover damages and costs associated with and resulting from the findings of the BioSteel review.

根據審查結果，我們將實施多項補救措施，以加強對 BioSteel 業務的控制，這些措施在 10-K 中進行了概述。我們認為在這個關鍵時刻迅速採取行動以確保業務穩定非常重要。為此，我們已經退出了 BioSteel 領導團隊的幾名成員，並正在考慮我們可用的所有法律補救措施，包括通過訴訟來追償與 BioSteel 審查結果相關的損失和費用。

Despite this, we have great confidence in the BioSteel brand. We saw a 101% revenue increase in fiscal '23. According to Nielsen, BioSteel's share of isotonic beverage sales in the Canadian national convenience and gas channel reached 11% in the fourth quarter of fiscal '23, up from 3% in the year prior. We're continuing to drive momentum in the Canadian market by doubling down on the food, drug and mass market channels, as well as club accounts with prominent BioSteel displays at Costco this summer. In the U.S., IRI data shows BioSteel's ACV at 38% in the fourth quarter of fiscal '23, up from 19% in the prior year. Growth drivers include the BioSteel NHL partnership, which delivered incredible visibility for the brand during the Stanley Cup playoffs.

儘管如此，我們對 BioSteel 品牌充滿信心。我們看到 23 財年的收入增長了 101%。根據尼爾森的數據，2023財年第四季度，BioSteel在加拿大全國便利和天然氣渠道的等滲飲料銷售份額達到11%，高於上一年的3%。今年夏天，我們將加倍投入食品、藥品和大眾市場渠道，以及在 Costco 展示突出的 BioSteel 的俱樂部賬戶，繼續推動加拿大市場的發展勢頭。在美國，IRI 數據顯示 BioSteel 23 財年第四季度的 ACV 為 38%，高於上一年的 19%。增長動力包括 BioSteel NHL 合作夥伴關係，該合作夥伴關係在斯坦利杯季后賽期間為該品牌帶來了令人難以置信的知名度。

As we look ahead to the strategy to sustain brand growth, we'll be tightening the geographical focus in the U.S. to prioritize key regional markets and place a sharper emphasis on the specialty retail channel such as gyms to build loyalty with athletically inspired consumers. At the same time, we also must address BioSteel's drag on our profitability, which Judy will speak to further in her remarks.

在我們展望維持品牌增長的戰略時，我們將加強對美國的地理關注，優先考慮關鍵區域市場，並更加重視健身房等專業零售渠道，以建立對運動愛好者的忠誠度。與此同時，我們還必須解決 BioSteel 對我們盈利能力的拖累，朱迪將在她的講話中進一步談到這一點。

As we focus on our core cannabis business, we'll continue to evaluate all options for BioSteel. With the groundswell of momentum behind the brand in North America, we anticipate strong top line growth leading to profitability in the years ahead.

當我們專注於核心大麻業務時，我們將繼續評估 BioSteel 的所有選擇。隨著該品牌在北美的強勁勢頭，我們預計強勁的營收增長將在未來幾年帶來盈利。

Next, I'd like to spend a few minutes discussing the performance of our Canadian cannabis business in fiscal '23. Overall, our adult-use cannabis B2B revenue in the fourth quarter of fiscal '23 ended slightly higher sequentially compared to the third quarter of fiscal '23. We view this as a positive given the challenging dynamics in the Canadian market and the scale of internal change that our team managed during the quarter.

接下來，我想花幾分鐘討論我們加拿大大麻業務在 23 財年的業績。總體而言，與 23 財年第三季度相比，我們在 23 財年第四季度的成人用大麻 B2B 收入環比略有上升。考慮到加拿大市場充滿挑戰的動態以及我們團隊在本季度管理的內部變革的規模，我們認為這是積極的。

One of the most important achievements driving this performance was the strong resurgence of the iconic Tweed brand in the flower and prerolled categories, which continue to dominate the Canadian adult-use market. The primary driver of this comeback has been a marked improvement in flower quality, fueling strong consumer demand, propelling Tweed's rise to the #9 brand spot in the Canadian adult-use market in the fourth quarter of fiscal '23 up from #16 in the year prior.

推動這一業績的最重要成就之一是標誌性花呢品牌在花卉和預卷類別中的強勁復甦，該品牌繼續主導加拿大成人使用市場。此次捲土重來的主要推動力是花卉質量的顯著改善，刺激了強勁的消費者需求，推動 Tweed 從 2013 年第四季度的加拿大成人用品市場品牌排名第 16 位上升至第 9 位。一年前。

As we look to the year ahead, we're excited to have taken another significant step forward to unify our North American house of brands. In late May, we announced that Canopy now controls all distribution, marketing and sales of Wana branded products in Canada. Our sales team is eager to represent Wana, which has held the top spot for edibles in Canada for the past 3 years. We've planned an ambitious brand growth strategy in Canada and are working with the Wana team to deliver industry-leading innovation like the passionfruit pineapple CBG gummies. With the addition of Wana, we expect incremental gains to our adjusted EBITDA as we cement Canopy as Canada's leading edibles company.

展望未來的一年，我們很高興在統一北美品牌之家方面又邁出了重要一步。 5 月底，我們宣布 Canopy 現在控制 Wana 品牌產品在加拿大的所有分銷、營銷和銷售。我們的銷售團隊渴望代表 Wana，該公司在過去 3 年中一直佔據加拿大食品領域的榜首。我們在加拿大製定了雄心勃勃的品牌發展戰略，並與 Wana 團隊合作提供行業領先的創新產品，例如百香果菠蘿 CBG 軟糖。隨著 Wana 的加入，我們預計調整後的 EBITDA 將會逐步增長，鞏固 Canopy 作為加拿大領先食品公司的地位。

Now I'd like to speak briefly to our progress on our entry into the U.S. cannabis market through Canopy USA, which I firmly believe is the best approach to gain exposure to the rapidly growing U.S. market. To advance this strategy, we filed a revised proxy statement with the SEC in the current quarter, which outlines revisions to the structure of our interest in Canopy USA in order to ensure continued compliance with NASDAQ listing rules.

現在我想簡要談談我們通過 Canopy USA 進入美國大麻市場的進展，我堅信這是進入快速增長的美國市場的最佳途徑。為了推進這一戰略，我們在本季度向 SEC 提交了一份修訂後的委託書，其中概述了我們對 Canopy USA 權益結構的修訂，以確保繼續遵守納斯達克上市規則。

Following regulatory review, we plan to subsequently file a definitive proxy statement that will pave the way for a special meeting, during which shareholders will be asked to approve the creation of a new class of nonvoting exchangeable shares. Upon receiving the required shareholder approval and the conversion of Constellation shares from common to exchangeable, Canopy USA is expected to exercise its right to acquire Acreage, Wana and Jetty.

經過監管審查後，我們計劃隨後提交一份明確的委託書，為召開特別會議鋪平道路，會議期間將要求股東批准創建新類別的無投票權可交換股票。在獲得所需的股東批准並將 Constellation 股票從普通股轉換為可交換股後，Canopy USA 預計將行使其收購 Acreage、Wana 和 Jetty 的權利。

Our primary objective for Canopy USA is to optimize the value of our entire U.S. ecosystem by leveraging their brand portfolios, routes to market and operations. Overall, we continue to believe the Canopy USA platform positions us favorably for the continued evolution of the U.S. market.

Canopy USA 的主要目標是通過利用其品牌組合、市場路線和運營來優化整個美國生態系統的價值。總體而言，我們仍然相信 Canopy USA 平台使我們在美國市場的持續發展中處於有利地位。

Finally, I'd like to outline our business priorities for fiscal '24. Our priorities are designed to deliver sustained revenue and adjusted EBITDA growth for all key business units. For our Canadian cannabis business, that means prudently managing expenses to deliver a stable to growing top line. We see this being driven by continued gains across the Tweed brand, including flower and prerolled joints. We'll apply the same enhanced cultivation processes that have improved our flower quality across the Tweed brand to strengthen the competitive positioning of Doja and 7ACRES.

最後，我想概述一下我們 24 財年的業務重點。我們的首要任務是為所有關鍵業務部門提供持續的收入和調整後的 EBITDA 增長。對於我們的加拿大大麻業務來說，這意味著謹慎管理費用，以實現穩定增長的收入。我們認為這是由 Tweed 品牌的持續增長所推動的，包括花朵和預卷接頭。我們將採用相同的強化栽培流程，提高整個 Tweed 品牌的花卉質量，以加強 Doja 和 7ACRES 的競爭地位。

On the medical side of our Canadian cannabis business, we expect that Canopy will continue our momentum by focusing on driving insured patient registrations. For our international medical cannabis business, we're focused on the continued growth of our Australian and European sales by improving the consistency of supply of high THC flower strains and the sales of new products, including the increased distribution of our medically certified stores in Bickel vaporizers. And speaking of stores in Bickel, we anticipate growth in the North American market with dedicated sales resources in place in the U.S. along with new product innovation coming to market in fiscal '24.

在我們加拿大大麻業務的醫療方面，我們預計 Canopy 將通過專注於推動投保患者登記來繼續我們的勢頭。對於我們的國際醫用大麻業務，我們專注於通過提高高 THC 花卉品種供應的一致性和新產品的銷售來實現澳大利亞和歐洲銷售的持續增長，包括增加我們在比克爾的醫學認證商店的分銷汽化器。說到比克爾的商店，我們預計北美市場會增長，因為在美國擁有專門的銷售資源，並且新產品創新將於 24 財年上市。

And for BioSteel, FY '24 is expected to mark a year of growth as the brand focuses on expanding its North American market position. These priorities, in addition to monitoring continued value creation through Canopy USA will lay the foundation necessary for Canopy to achieve positive adjusted EBITDA and position us for long-term North American brand-driven leadership. That is our primary objective.

對於 BioSteel 來說，24 財年預計將標誌著增長的一年，因為該品牌專注於擴大其北美市場地位。除了通過 Canopy USA 監控持續的價值創造之外，這些優先事項還將為 Canopy 實現正調整 EBITDA 奠定必要的基礎，並使我們在北美品牌驅動的長期領導地位上處於領先地位。這是我們的首要目標。

With that, I'll now turn it over to Judy.

有了這個，我現在就把它交給朱迪。

Thank you very much, David, and good evening, everyone. I'll start by discussing our balance sheet. I'll then briefly recap our fourth quarter and full year 2023 results, including additional details around restatements related to BioSteel, I'll then review our fiscal 2024 priorities and outlook.

非常感謝你，大衛，大家晚上好。我首先討論我們的資產負債表。然後，我將簡要回顧我們的第四季度和 2023 年全年業績，包括與 BioSteel 相關的重述的其他詳細信息，然後我將回顧我們 2024 財年的優先事項和前景。

Let's start with the balance sheet. As of March 31, 2023, we had $783 million in cash and short-term investments, and total debt of $1.3 billion, of which $557 million was classified as current portion of the long-term debt. Subsequent to March 31, 2023, we've taken a number of additional actions to strengthen our balance sheet. In April 2023, we paid down USD 93.75 million of our term loan at a 7% discount as part of the second paydown related to the October 2022 agreement. Also in April, we refinanced $100 million of the 4.25% unsecured July 2023 notes held by a subsidiary of Constellation, which we intend to negotiate converting into shares.

讓我們從資產負債表開始。截至 2023 年 3 月 31 日，我們擁有 7.83 億美元的現金和短期投資，債務總額為 13 億美元，其中 5.57 億美元被歸類為長期債務的流動部分。 2023 年 3 月 31 日之後，我們採取了一系列額外行動來強化我們的資產負債表。 2023 年 4 月，我們以 7% 的折扣支付了 9,375 萬美元的定期貸款，作為與 2022 年 10 月協議相關的第二次還款的一部分。同樣在 4 月份，我們對 Constellation 子公司持有的 2023 年 7 月 4.25% 無抵押票據進行了 1 億美元的再融資，我們打算通過談判將其轉換為股票。

In addition, the USD 100 million related to the February 2023 convertible debentures has now mostly been settled through equity. Adjusting for the payments made in April, the Constellation notes and the February 2023 convertible debentures, our cash and short-term investments would be [$666 million] and current portion of the long-term debt will be $237 million due in July '23 plus accrued interest. With that in mind, I'd like to address the growing concern disclosure in our 10-K.

此外，與2023年2月可轉換債券相關的1億美元目前大部分已通過股權結算。調整 4 月份的付款、星座票據和 2023 年 2 月可轉換債券後，我們的現金和短期投資將為 [6.66 億美元]，長期債務的當前部分將為 2.37 億美元，將於 2023 年 7 月到期應計利息。考慮到這一點，我想解決我們 10-K 中披露的日益令人擔憂的問題。

We ended fiscal '23 with $783 million in cash and short-term investments, and we believe that we have a number of options that are executable over the next several months that will ensure we have sufficient capital to fund our ongoing operations and meet our financial covenants. For one, we've already taken meaningful actions to reduce the operating cash burn in the businesses. These include the business transformation program announced during FY '23, which is expected to reduce total operating expenses by $240 million to $310 million by the end of fiscal 2024 inclusive of the $125 million realized during fiscal 2023.

我們在 23 財年結束時擁有 7.83 億美元的現金和短期投資，我們相信我們有許多在未來幾個月內可執行的選擇，這將確保我們有足夠的資本來資助我們的持續運營並滿足我們的財務要求契約。其一，我們已經採取了有意義的行動來減少企業的運營現金消耗。其中包括 23 財年宣布的業務轉型計劃，預計到 2024 財年末將總運營支出減少 2.4 億美元至 3.1 億美元，其中包括 2023 財年實現的 1.25 億美元。

Cost reduction initiatives underway at BioSteel that are expected to further reduce our overall cash burn. Additionally, we're also working on other options to improve our liquidity. These include facility dispositions, several of which have already closed and additional agreements have been signed that are expected to generate up to $150 million in proceeds by the end of September 2023. So far during Q1 of fiscal '24, we received proceeds of $56 million. We're also exploring additional options to monetize our noncore assets and businesses, and we're also in discussions with our lenders on various options to reduce our debt in an accretive manner.

BioSteel 正在進行的成本削減舉措預計將進一步減少我們的整體現金消耗。此外，我們還在研究其他方案來提高流動性。其中包括設施處置，其中幾項已經完成，並簽署了額外協議，預計到 2023 年 9 月底將產生高達 1.5 億美元的收益。到目前為止，在 24 財年第一季度，我們收到了 5600 萬美元的收益。我們還在探索其他選擇，以將我們的非核心資產和業務貨幣化，並且我們還在與貸方討論以增值方式減少債務的各種選擇。

I'll now review our fourth quarter and full year fiscal '23 financial results. In Q4, we generated consolidated net revenue of $87.5 million and full year fiscal 2023 revenue of $403 million. Full year revenue declined 21% over the restated prior year period. When adjusting for the impact of divestitures of C3 and the Canadian retail business, revenues declined 11% and the declines moderated in the second half of the year.

我現在將回顧我們 23 財年第四季度和全年的財務業績。第四季度，我們的綜合淨收入為 8750 萬美元，2023 財年全年收入為 4.03 億美元。全年收入比重述的上年同期下降 21%。在調整 C3 和加拿大零售業務剝離的影響後，收入下降了 11%，下半年下降幅度有所放緩。

Reported gross margins during Q4 were negatively impacted by restructuring charges and sizable inventory write-offs, most of which relate to our strategic shift in Canada and BioSteel. Adjusted gross margins of negative 18% were impacted by additional inventory write-offs at BioSteel. Adjusted gross margins, excluding BioSteel, was 11% in Q4. Adjusted EBITDA loss of $96 million during Q4 FY 2023 included approximately $12 million of inventory write-offs at BioSteel and $1.5 million of bad debt expense in rest-of-world cannabis. Excluding increased investments at BioSteel, adjusted EBITDA improved relative to Q3 FY '23, demonstrating progress against our business transformation plan.

第四季度報告的毛利率受到重組費用和大量庫存沖銷的負面影響，其中大部分與我們在加拿大和 BioSteel 的戰略轉變有關。 BioSteel 額外的庫存沖銷影響了調整後毛利率為負 18%。不包括 BioSteel 在內，第四季度調整後毛利率為 11%。 2023 財年第四季度調整後 EBITDA 損失為 9600 萬美元，其中包括 BioSteel 約 1200 萬美元的庫存沖銷和世界其他地區大麻的 150 萬美元壞賬費用。不包括對 BioSteel 增加的投資，調整後的 EBITDA 相對於 23 財年第三季度有所改善，這表明我們的業務轉型計劃取得了進展。

On a full year basis, our adjusted EBITDA loss was $350 million, driven by negative gross margins in Canada and BioSteel as well as significant investments at BioSteel. Included in the full year adjusted EBITDA losses are approximately $50 million of costs that are onetime in nature or not expected to recur given the significant changes that we have made to our businesses in fiscal 2023.

全年來看，我們調整後的 EBITDA 虧損為 3.5 億美元，這是由於加拿大和 BioSteel 的毛利率為負以及 BioSteel 的重大投資所致。全年調整後 EBITDA 損失中包括約 5000 萬美元的成本，鑑於我們在 2023 財年對業務做出的重大變化，這些成本是一次性的或預計不會再次發生。

SG&A expenses, excluding acquisition costs and depreciation and amortization expenses saw a decline of 3% on a full year basis inclusive of the significant increase in this year's marketing investments at BioSteel. Excluding BioSteel and adjusting for the Canadian wage program benefit received last year as well as the impact of dispositions, SG&A expenses would have declined by 21% or approximately $94 million year-over-year.

SG&A 費用（不包括收購成本以及折舊和攤銷費用）全年下降了 3%，其中包括今年 BioSteel 營銷投資的大幅增加。不包括 BioSteel 並調整去年收到的加拿大工資計劃福利以及處置的影響，SG&A 費用將同比下降 21%，即約 9400 萬美元。

Free cash flow of a negative $143 million was a 13% increase in outflow compared to Q4 of fiscal 2022 driven by increased investment in BioSteel and costs related to the formation of Canopy USA.

自由現金流為負 1.43 億美元，與 2022 財年第四季度相比，流出增加了 13%，原因是對 BioSteel 的投資增加以及與 Canopy USA 的組建相關的成本。

Now let's take a look at the results from each area of our business for Q4. Canada cannabis revenues declined 8%, excluding the retail business we divested during Q3 of fiscal '23. Importantly, our adult-use B2B sales increased slightly compared to Q3 and medical sales increased 8% compared to a year ago period and was stable relative to Q3. Canada cannabis' adjusted gross margins was negative 1% but adjusted cash gross margins improved to 33% when normalizing for the impact of depreciation and inventory write-downs.

現在讓我們看一下第四季度我們各個業務領域的業績。加拿大大麻收入下降了 8%，不包括我們在 23 財年第三季度剝離的零售業務。重要的是，我們的成人用 B2B 銷售額與第三季度相比略有增長，醫療銷售額與去年同期相比增長了 8%，並且與第三季度相比保持穩定。加拿大大麻的調整後毛利率為負 1%，但在折舊和庫存減記影響正常化後，調整後現金毛利率提高至 33%。

Canada cannabis' gross margins have now improved for 4 consecutive quarters, and we expect additional improvements in fiscal '24 as we execute on our cost reduction program. Rest-of-world Cannabis segment, excluding C3 divestiture, was down 19% year-over-year. We saw another record quarter of revenue in Australia, which was offset by the impact of shipments to Israel in Q4 FY 2022 and a decline in our U.S. CBD business on a year-over-year basis.

加拿大大麻的毛利率現已連續 4 個季度有所改善，我們預計隨著我們執行成本削減計劃，24 財年將進一步改善。世界其他地區的大麻業務（不包括 C3 剝離）同比下降 19%。我們在澳大利亞的收入再創新高，但被 2022 財年第四季度向以色列發貨的影響以及美國 CBD 業務同比下降所抵消。

Within our consumer products businesses, Storz & Bickel revenues declined by 28% in Q4 fiscal '23 versus Q4 fiscal '22, with last year's Q4 benefiting from sales of new products. We did see sales improve during the second half of the fiscal 2023 versus the first half and full year gross margins in this business remained resilient at 40%.

在我們的消費品業務中，Storz & Bickel 23 財年第四季度的收入與 22 財年第四季度相比下降了 28%，去年第四季度受益於新產品的銷售。我們確實看到 2023 財年下半年的銷售額較上半年有所改善，且該業務的全年毛利率仍保持在 40% 的彈性水平。

This Works revenue decreased 10% in the current period compared to the prior year due to continued challenging U.K. retail dynamics. We are seeing signs of stabilization in this business and adjusted gross margins improved to 44% from 40% in the prior year period.

由於英國零售業形勢持續嚴峻，This Works 本期收入較上年下降 10%。我們看到該業務出現穩定跡象，調整後毛利率從去年同期的 40% 提高至 44%。

I'd like to now spend a few minutes discussing BioSteel's performance. After a thorough review that David alluded to, we have restated the historical financials with the overall correction of the revenue statement, resulting in a decrease of approximately $10 million in net revenue for fiscal year ended March 2022 or 2% of consolidated net revenue and $14 million in net revenue for 9 months ended December 2022 or 4% of consolidated net revenue. A majority of the restatements relate to international sales, which we have exited already.

我現在想花幾分鐘討論 BioSteel 的性能。經過 David 提到的徹底審查後，我們重述了歷史財務數據，並對收入報表進行了整體修正，導致截至 2022 年 3 月的財年淨收入減少約 1000 萬美元，即合併淨收入的 2% 和 14 美元截至 2022 年 12 月的 9 個月淨收入為 100 萬美元，佔合併淨收入的 4%。大部分重述都與我們已經退出的國際銷售有關。

Our consolidated adjusted EBITDA has also been restated by a similar amount for fiscal 2022 and 9 months through fiscal 2023. The restated financials for fiscal '22 as well as quarterly financials for Q1 and Q3 of fiscal '23 are included in our 10-K. During Q4 of fiscal 2023, BioSteel generated net revenue of $19.3 million and full year fiscal 2023 revenue of $69.6 million. Q4 gross margins were significantly impacted by lower than forecasted sales during fiscal '23 as well as our decision to exit international businesses and refine our U.S. commercial strategy.

我們的合併調整後 EBITDA 也已按類似金額重述了 2022 財年和截至 2023 財年的 9 個月。重述的 22 財年財務數據以及 23 財年第一季度和第三季度的季度財務數據均包含在我們的 10-K 中。 2023 財年第四季度，BioSteel 淨收入為 1930 萬美元，2023 財年全年收入為 6960 萬美元。第四季度的毛利率受到 23 財年銷售額低於預期以及我們退出國際業務和完善美國商業戰略的決定的嚴重影響。

We also faced increases in sales and marketing costs related to endorsements, sampling and trade marketing programs. With BioSteel being a significant drag to our overall profitability, addressing its cost structure is an important part of Canopy's overall profitability plan. We've already undertaken additional cost reduction initiatives at BioSteel that is incremental to our company-wide restructuring actions initiated in fiscal 2023.

我們還面臨與代言、樣品和貿易營銷計劃相關的銷售和營銷成本的增加。由於 BioSteel 嚴重拖累了我們的整體盈利能力，解決其成本結構是 Canopy 整體盈利計劃的重要組成部分。我們已經在 BioSteel 採取了額外的成本削減舉措，這是我們 2023 財年啟動的全公司重組行動的增量舉措。

First, we have a number of gross margin improvement initiatives that are well underway, including exiting unprofitable customer programs and reducing the depth and frequency of certain promotions, transitioning to a new warehouse model that will eliminate significant fixed cost obligations and reduce shipping costs, reduction in inventory to lower our storage costs and new contracts with more favorable product costs across our powder and ready-to-drink products. These initiatives are expected to generate significant year-over-year improvement in gross margins in fiscal 2024 and put the business on a firm path to achieve gross margins comparable to other premium beverage businesses over time.

首先，我們有許多毛利率改善舉措正在順利進行，包括退出無利可圖的客戶計劃、減少某些促銷的深度和頻率、過渡到新的倉庫模式，該模式將消除重大的固定成本義務並降低運輸成本，減少庫存以降低我們的存儲成本，並簽訂新合同，為我們的粉末和即飲產品提供更優惠的產品成本。這些舉措預計將在 2024 財年實現毛利率同比顯著提高，並為該業務奠定堅實的基礎，隨著時間的推移實現與其他高端飲料業務相當的毛利率。

Second, following stepped-up investments in sales and marketing during fiscal 2023, work is well underway to significantly rightsize our marketing spend. We have already exited or have not renewed a number of third-party marketing contracts. We're reviewing our endorsement to ensure we have a focused approach, and we're reducing costly sampling programs that don't generate returns. And we're exploring additional options available to us to ensure that we can further minimize cash burn at BioSteel.

其次，繼 2023 財年加大銷售和營銷投資之後，大幅調整營銷支出的工作正在順利進行。我們已經退出或沒有續簽一些第三方營銷合同。我們正在審查我們的認可，以確保我們有一個有針對性的方法，並且我們正在減少無法產生回報的昂貴抽樣計劃。我們正在探索可用的其他選項，以確保我們能夠進一步減少 BioSteel 的現金消耗。

I'd like to now discuss our fiscal 2024 priorities and outlook and our actions to achieve profitability across the businesses. In Canada cannabis, we believe we have rightsized our operations to achieve positive adjusted EBITDA at current run rate revenue of $35 million to $40 million per quarter. Our cost reduction program is well underway with majority of the savings expected to be driven by reduced head count, which we've already implemented and elimination of facility costs that we've closed.

我現在想討論一下我們 2024 財年的優先事項和前景，以及我們為實現各業務盈利而採取的行動。在加拿大大麻領域，我們相信我們已經調整了業務規模，以當前每季度 3500 萬至 4000 萬美元的運行收入實現正調整 EBITDA。我們的成本削減計劃正在順利進行，預計大部分節省將通過減少員工數量來實現，我們已經實施了這一計劃，並消除了我們已經關閉的設施成本。

In rest-of-world cannabis, we expect continued growth in Australia and Poland as well as improved performance in Germany, driven by new supply of high THC flower. We also expect improvement in profitability as we further streamline the business by shifting to a distributor model in the U.K. and we do not anticipate bad debt expense of over $3 million to recur during fiscal 2024.

在世界其他地區的大麻中，我們預計在高 THC 花的新供應的推動下，澳大利亞和波蘭將持續增長，德國的業績也會有所改善。我們還預計，隨著我們通過轉向英國的分銷商模式進一步簡化業務，盈利能力將得到改善，並且我們預計 2024 財年不會再出現超過 300 萬美元的壞賬費用。

Storz & Bickel is focused on returning to growth in fiscal 2024 driven by new product launch later this year and renewed focus in the U.S. with additional resources expected to drive enhanced presence in that important market. We expect Storz & Bickel to maintain healthy margins in fiscal 2024. For BioSteel, the focus in fiscal '24 is further building on its strong momentum in Canada, refining its U.S. strategy and improving gross margins while rightsizing its marketing spend. This Works is expected to stabilize top line while improving profitability in fiscal '24.

Storz & Bickel 的重點是在今年晚些時候新產品推出的推動下，在 2024 財年恢復增長，並重新關注美國，預計額外資源將增強在這一重要市場的影響力。我們預計 Storz & Bickel 將在 2024 財年保持健康的利潤率。對於 BioSteel 來說，24 財年的重點是進一步鞏固其在加拿大的強勁勢頭，完善其美國戰略並提高毛利率，同時調整營銷支出。 This Works 預計將穩定營收，同時提高 24 財年的盈利能力。

So taken together, we expect to approach positive adjusted EBITDA across all of our businesses, except for BioSteel as we exit fiscal 2024. We also expect BioSteel to show meaningful reduction in its adjusted EBITDA losses in fiscal 2024 as we execute on our growth plan and cost reduction initiatives. Liquidity preservation and strengthening our financial position is also a key priority in fiscal '24. To this end, we're focused on executing against in our cost savings program, mitigating operating cash burn at BioSteel, maximizing proceeds from asset divestitures and reducing our debt and interest expenses in an accretive manner.

因此，總的來說，我們預計，隨著我們退出 2024 財年，除 BioSteel 外，我們所有業務都將實現正調整 EBITDA。我們還預計，隨著我們執行增長計劃和實施增長計劃，BioSteel 將在 2024 財年顯著減少調整後 EBITDA 損失。降低成本的舉措。保存流動性和加強我們的財務狀況也是 24 財年的首要任務。為此，我們專注於執行我們的成本節約計劃，減少 BioSteel 的運營現金消耗，最大限度地提高資產剝離的收益，並以增值的方式減少我們的債務和利息支出。

We believe the combination of these actions, along with our existing cash balance and expected proceeds from facility divestitures, should provide us with flexibility to drive our businesses forward, while meeting all of our debt obligations.

我們相信，這些行動的結合，加上我們現有的現金餘額和設施剝離的預期收益，應該為我們提供靈活性，推動我們的業務向前發展，同時履行我們的所有債務義務。

In conclusion, with significant transformation underway, we believe we now have elements in place to achieve profitability in Canada and significantly reduce our cash burn for the total company while we work towards strengthening our balance sheet and driving continued focus on our core cannabis business.

總之，隨著正在進行的重大轉型，我們相信我們現在已經具備在加拿大實現盈利的要素，並顯著減少整個公司的現金消耗，同時我們努力加強我們的資產負債表並繼續關注我們的核心大麻業務。

This concludes my prepared comments. We will now take questions. Operator, David and I are now happy to take questions from the analysts.

我準備好的評論到此結束。我們現在將接受提問。接線員、大衛和我現在很樂意回答分析師的問題。

(Operator Instructions) Your first question will come from Tamy Chen at BMO Capital Markets.

（操作員說明）您的第一個問題將由 BMO 資本市場的 Tamy Chen 提出。

I wanted to go to your target for EBITDA by the end of fiscal '24. You don't break out the EBITDA by segment. So it's a bit hard to assess your path to achieve the targets you've set out here today. So I'm just wondering, is there anything more you can share with us about how the cannabis segment, at least maybe the Canadian business P&L starts to look now that you're complete your asset-light transition.

我希望在 24 財年末達到您的 EBITDA 目標。您無需按部門細分 EBITDA。因此，評估實現今天在這裡設定的目標的道路有點困難。所以我只是想知道，您是否可以與我們分享更多關於大麻細分市場的信息，至少也許加拿大企業的損益表現在開始考慮，因為您已經完成了輕資產轉型。

For example, like I'm not sure what the margin can look like now that you've outsourced a lot of your manufacturing extract products and closing the challenging growth facilities you have as well. I think, it's hard to kind of assess what your SG&A is, how much of that is the Canadian business and all the asset-heavy infrastructure that was there before. So anything additional you can share about how the P&L of that business starts to look going forward would be helpful.

例如，我不確定既然您已經外包了許多提取物產品的製造並關閉了您擁有的具有挑戰性的增長設施，那麼利潤會是什麼樣子。我認為，很難評估你的銷售管理及行政費用（SG&A）是什麼，其中有多少是加拿大業務以及之前存在的所有重資產基礎設施。因此，您可以分享的有關該業務的損益表如何開始向前發展的任何其他內容都會有所幫助。

Sure. Thanks, Tamy, I'll start with just a comment that I agree, just when you look at our P&L, it's very difficult to clearly understand what's happening with all the moving parts and us not being able to really provide clear details around the segment profitability. We are working at ways to address that going forward and hopefully be able to give you more clarity on that on a go-forward basis at some point in the future.

當然。謝謝，Tamy，我首先要發表一條我同意的評論，當你查看我們的損益表時，很難清楚地了解所有活動部件發生的情況，而且我們無法真正提供該細分市場的清晰細節盈利能力。我們正在研究解決這個問題的方法，並希望能夠在未來的某個時候讓您更清楚地了解這一問題。

But to come back to your question about Canada, I think -- I would say a few things. Number one, what we have done from a business change standpoint is really rightsize all of our operations and SG&A cost structure to be able to be profitable at $35 million to $40 million per quarter revenue run rate. I think you've seen us now do that for a couple of quarters. And we think with the revenue of that level, we are now rightsized to really deliver the adjusted EBITDA that would be breakeven to positive on that basis.

但回到你關於加拿大的問題，我想——我會說幾句話。第一，從業務變革的角度來看，我們所做的實際上是調整我們所有運營和 SG&A 成本結構的規模，以便能夠以每季度 3500 萬至 4000 萬美元的收入運行率實現盈利。我想你已經看到我們這樣做了幾個季度了。我們認為，有了這個水平的收入，我們現在已經調整規模，可以真正實現調整後的 EBITDA，在此基礎上實現盈虧平衡。

And I think there are really a few elements to that. Number one, obviously, we have taken significant cost out of our cost of goods sold. We had head count reductions that we have implemented already. We've closed facilities, both -- in a number of locations that save us not just the costs like insurance and taxes and just the nonpeople costs that really are costly when you have significant footprint just from an operational standpoint. So a number of those closures that we've already made are going to start to flow through, through our P&L. We are, I think, tracking actually a little bit earlier than expected in terms of exiting cultivation in Smiths Falls. So once that happens, by the end of this quarter, we should also see additional cost savings flow through from a cannabis standpoint.

我認為這確實有幾個要素。第一，顯然，我們已經從銷售成本中扣除了大量成本。我們已經實施了裁員。我們已經關閉了許多地點的設施，這不僅為我們節省了保險和稅收等成本，而且還節省了非人員成本，當您僅從運營角度來看，當您擁有大量足跡時，這些成本確實是昂貴的。因此，我們已經完成的許多關閉將開始通過我們的損益表進行處理。我認為，就史密斯福爾斯的退出種植而言，我們實際上比預期早了一點。因此，一旦發生這種情況，到本季度末，從大麻的角度來看，我們還應該看到額外的成本節省。

So I think that's going to drive really a cash gross margin in our view, closer to that high 30% that we've always talked about in the past. And then from an SG&A standpoint, we've made a number of changes on the sales and marketing side, and working and even on the G&A side to ensure that we are, again, profitable with the revenue at $35 million to $40 million on a quarterly basis.

因此，我認為，在我們看來，這將真正提高現金毛利率，接近我們過去一直談論的 30% 高水平。然後，從 SG&A 的角度來看，我們在銷售和營銷方面做出了一些改變，甚至在 G&A 方面也做出了一些改變，以確保我們再次實現盈利，收入達到 3500 萬至 4000 萬美元。每季。

Your next question comes from Vivien Azer at TD Cowen.

您的下一個問題來自 TD Cowen 的 Vivien Azer。

I wanted to follow up on that question a little bit, but with a focus on BioSteel. Recognizing that there's appetite to absorb continued losses in FY '24 as you continue to grow the top line, certainly, it sounds like with some of the marketing realignment, nonproductive sampling, revisiting some of the sponsorship agreements that certainly, you're at least looking to narrow the magnitude of those losses. So Judy, I was wondering, one, if you could kind of dimensionalize that path to profitability in BioSteel.

我想稍微跟進一下這個問題，但重點是 BioSteel。認識到隨著收入繼續增長，人們有興趣吸收 24 財年的持續損失，當然，這聽起來像是一些營銷調整、非生產性抽樣、重新審視一些贊助協議，當然，你至少是希望縮小這些損失的幅度。所以朱迪，我想知道，第一，你是否可以對 BioSteel 的盈利之路進行維度化。

And then, two, as a follow-up, David. Maybe you could just comment on the realignment in terms of the priority retail channels in the U.S. because it seems like the reorientation of the brand kind of moves away from the channels with which you're most familiar and have the deepest relationships. So just wondering whether that can create some dislocation in the top line that might impede some of the profit improvements that you guys have planned for FY '24 on BioSteel.

然後，兩個，作為後續行動，大衛。也許您可以就美國優先零售渠道的重新調整髮表評論，因為品牌的重新定位似乎有點遠離您最熟悉且關係最深的渠道。因此，我想知道這是否會在營收中造成一些混亂，從而可能阻礙你們為 BioSteel 計劃的 24 財年利潤改善計劃。

So I'll start, Vivien, thanks for the question. So to be clear, we are not accepting the level of operating losses that we are seeing at BioSteel today. We understand that BioSteel currently is a sizable drag to our overall profitability. And we are very focused on significantly reducing our cash burn in that business as well as exploring other options to minimize cash burn that is impacting the overall cash at the Canopy level.

那麼我就開始吧，Vivien，謝謝你的提問。因此需要明確的是，我們不接受 BioSteel 今天看到的運營虧損水平。我們知道 BioSteel 目前對我們的整體盈利能力造成了相當大的拖累。我們非常注重大幅減少該業務的現金消耗，並探索其他選擇，以盡量減少影響 Canopy 層面整體現金的現金消耗。

In terms of, I think, the year-over-year change as it relates to BioSteel profitability, there have been a few discrete items in fiscal '23 that did drag the profitability more than, I think, in normal years. We did have sizable inventory write-downs in FY '23 as well as certain contract manufacturing costs that are not expected to occur in FY '24, just given that we now own our manufacturing facility in Verona. And we think the rightsizing of the inventory and reducing the current inventory levels will also allow us not to see the level of inventory write-downs that we saw in FY '23.

我認為，就與 BioSteel 盈利能力相關的同比變化而言，23 財年有一些離散項目對盈利能力的拖累確實比正常年份更大。鑑於我們現在擁有位於維羅納的製造工廠，我們在 23 財年確實進行了大量庫存減記，並且預計 24 財年不會發生某些合同製造成本。我們認為，庫存規模調整和降低當前庫存水平也將使我們不會看到 23 財年那樣的庫存減記水平。

In addition, there's -- as I said earlier, we have a number of initiatives to really rightsize our marketing spend and make sure that we can generate a path to being a profitable business for this company because I think the brand is doing really well. It's just really making sure that we've got the right cost structure to support the brand in a way that is more focused and disciplined. And I think that, that will also go a long way from our overall profitability standpoint and getting to a significant reduction in our overall cash burn and adjusted EBITDA improvement in addition to the business transformation that we have announced as it relates to Canada and the rest of the businesses.

此外，正如我之前所說，我們有許多舉措來真正調整我們的營銷支出，並確保我們能夠為這家公司開闢一條盈利業務的道路，因為我認為該品牌做得非常好。這只是真正確保我們擁有正確的成本結構，以更加專注和自律的方式支持品牌。我認為，從我們整體盈利能力的角度來看，除了我們宣布的與加拿大和其他地區相關的業務轉型之外，這也將大大減少我們的整體現金消耗和調整後的 EBITDA 改善。的企業。

Yes. And Vivien, in terms of channel strategy, I think when you look at BioSteel, first of all, the issues that we outlined related to the brand are really unfortunate because it's overshadowing the fact that the brand continues to be accepted by consumers and taken off the shelf as evidenced by being up 101% year-over-year. We think, though, that the playbook in Canada is the right playbook to use ultimately in the U.S. And so in Canada, it was a brand that started out in the -- on the soccer fields and hockey rinks and in the gyms, kind of building that kind of authentic affinity with its consumer base. And now you can see BioSteel on the shelf with all of the major retailers in prominent positions and with more and more consumer takeaway.

是的。 Vivien，就渠道策略而言，我認為當你看 BioSteel 時，首先，我們概述的與該品牌相關的問題確實很不幸，因為它掩蓋了該品牌繼續被消費者接受並起飛的事實貨架同比增長 101% 就證明了這一點。不過，我們認為加拿大的劇本是最終在美國使用的正確劇本。因此，在加拿大，這個品牌始於足球場、曲棍球場和體育館，有點像與其消費者群體建立真正的親和力。現在你可以看到BioSteel在所有主要零售商的貨架上都處於顯眼的位置，並且有越來越多的消費者外賣。

In the U.S., we think we need to deploy the same strategy, if you will, by starting to build the base of the brand maybe a little more slowly than we would have liked, allowing consumers to really connect with it because it's an authentic hydration product. And then ultimately, we end up in those big retailers. We're already positioned today using the distribution channels that we're all familiar with. But I think going direct into those retailers without working on building up the base and trying to do it maybe across the entirety of the U.S. was a bit of an overreach for a company our size. And so we've just decided to retrench the business a little bit in the U.S.

在美國，我們認為我們需要部署相同的策略，如果你願意的話，開始建立品牌基礎的速度可能比我們希望的要慢一些，讓消費者真正與它建立聯繫，因為它是真正的補水產品產品。最終，我們最終進入了那些大型零售商。今天，我們已經利用我們都熟悉的分銷渠道進行了定位。但我認為，對於我們這樣規模的公司來說，直接進入這些零售商而不努力建立基礎並試圖在整個美國做到這一點有點過分了。因此，我們剛剛決定稍微縮減在美國的業務。

Your next question comes from Aaron Grey at Alliance Global Partners.

您的下一個問題來自 Alliance Global Partners 的 Aaron Gray。

So I just want to touch on Canopy USA has disclosed the updated structure of it. So really just want to talk about the ability to finance the U.S. operations once this closes. Obviously, won't be consolidating, so you can comply with NASDAQ. But just future funding, the ability to do that will we be able to have any benefit from public listing on NASDAQ would you have to go through some other venture with just Canopy USA. Just any help in that. And then just also, I guess, plans overall in terms for funding that Canopy USA business once this is closed.

所以我只想談談 Canopy USA 已經披露了它的更新結構。所以我真的只是想談談一旦交易結束後為美國業務提供融資的能力。顯然，不會進行整合，因此您可以遵守納斯達克的規定。但只要未來的資金，有能力做到這一點，我們就能夠從納斯達克公開上市中獲得任何好處，否則你必須與 Canopy USA 進行其他一些合資。只要有任何幫助就可以了。然後，我想，一旦關閉，Canopy USA 業務的資金籌措將全面計劃。

Yes. So a couple of things. The first is that I just want to reiterate that the businesses are already trying to do things together to elevate their individual brands, individual operations and routes to market, right? So a lot of that work is taking place even while we wait approval to file our definitive proxy. In terms of funding on the day that the business closes, the business will have more than sufficient cash on hand to fund its growth aspirations for the foreseeable future.

是的。有幾件事。首先，我只是想重申，企業已經在嘗試共同努力提升各自的品牌、各自的運營和市場路線，對嗎？因此，即使在我們等待批准提交最終委託書的同時，許多工作仍在進行。就企業關閉之日的資金而言，該企業手頭將有足夠的現金來滿足其在可預見的未來的增長願望。

And then really, the question then is if there is other, like, inorganic initiatives that we want to take on with the Canopy USA structure? We do have ways to fund that using the already developed Canopy USA structure. So again, that's not what I would -- where I would expect we go right out of the gate, but we have the ability to do that under the structure as it exists and the business will be well funded on day 1.

事實上，問題是我們是否希望在 Canopy USA 結構中採取其他類似的無機舉措？我們確實有辦法利用已經開發的 Canopy USA 結構來為此提供資金。再說一次，這不是我想要的——我希望我們一開始就能做到這一點，但我們有能力在現有的結構下做到這一點，並且業務將在第一天獲得充足的資金。

And I would just add on, just the benefit of having a brand-led asset-light model in the U.S. really does minimize the capital requirements to really build out the business and scale. So we're obviously deploying similar strategy in Canada, and I think it's important for people to understand sort of the reasons why we took this strategy in Canada as well, it's really about ensuring that there is minimal capital requirements to build out a strong presence at scale.

我想補充一點，在美國擁有品牌主導的輕資產模式的好處確實可以最大限度地減少真正建立業務和規模的資本要求。因此，我們顯然在加拿大部署了類似的戰略，我認為人們了解我們在加拿大也採取這一戰略的原因很重要，這實際上是為了確保建立強大的業務所需的最低資本要求規模化。

And we've seen it work at Wana where they've always been asset-light and continue to grow their brand and have a very attractive P&L as a result of that. We're seeing that same sort of mindset at Jetty and then Acreage ends up being a little more capital intensive. But again, I think, over time, we would look to be as asset light as possible in the U.S. just as we are in Canada (inaudible).

我們在瓦納看到了這一點，他們一直是輕資產的，並不斷發展自己的品牌，因此擁有非常有吸引力的損益表。我們在 Jetty 看到了同樣的心態，然後 Acreage 最終變得更加資本密集。但我再次認為，隨著時間的推移，我們將在美國尋求盡可能輕資產，就像我們在加拿大一樣（聽不清）。

Your next question comes from John Zamparo at CIBC Capital Markets.

您的下一個問題來自 CIBC 資本市場部的 John Zamparo。

I wanted to touch on the going concern language and just solvency generally. And given the state of the balance sheet and the magnitude of the gap to get to positive EBITDA. I wonder if you're considering selling any of the business units outright. And then secondly, assuming you get the outcome you want on Canopy USA and you're then able to issue more equity, I wonder how you'd go about that, what's your willingness to do it? And just given the state of the Canada space, generally, what would be your plans on issuing more equity in the future?

我想談談持續經營的語言和一般的償付能力。考慮到資產負債表的狀況以及實現正 EBITDA 的差距大小。我想知道您是否正在考慮直接出售任何業務部門。其次，假設你在 Canopy USA 上得到了你想要的結果，然後你能夠發行更多的股權，我想知道你會如何去做，你願意這樣做嗎？考慮到加拿大的現狀，您未來發行更多股票的計劃是什麼？

Yes, John. Thanks for the question. So on the -- on our balance sheet, I think the starting point is that we do still have a strong cash position. We ended the quarter -- the year with $783 million. As I said earlier, all of the facility, the dispositions that we had have either closed or currently working on will bring in additional up to $150 million in proceeds by September of 2023. And we expect a significant reduction in operating expenses in fiscal '24 as we execute on our cost savings program. So we think those actions are actually sufficient to allow us to have a flexibility in our balance sheet and continue to maintain the funding requirements for all of the businesses.

是的，約翰。謝謝你的提問。因此，在我們的資產負債表上，我認為出發點是我們仍然擁有強勁的現金狀況。本季度結束時，我們的收入為 7.83 億美元。正如我之前所說，到 2023 年 9 月，我們已經關閉或正在進行的所有設施、處置將帶來高達 1.5 億美元的額外收益。我們預計 24 財年的運營費用將大幅減少當我們執行成本節約計劃時。因此，我們認為這些行動實際上足以使我們的資產負債表具有靈活性，並繼續維持所有業務的資金需求。

But we think that there are additional options that are available to us, including looking at all of our noncore assets and businesses. I think we're really trying to position ourselves as a cannabis focused company. And I think historically, we've had a number of businesses that were not core that we've divested and we're continuing to explore options to simplify our businesses and generate some cash as we look for opportunities to divest some of these noncore assets and businesses.

但我們認為我們還有其他選擇，包括審視我們所有的非核心資產和業務。我認為我們確實在努力將自己定位為一家專注於大麻的公司。我認為從歷史上看，我們已經剝離了許多非核心業務，並且在尋找剝離部分非核心資產的機會時，我們將繼續探索簡化業務並產生一些現金的選擇和企業。

I also recognize -- we also recognize that we want to make sure that we reduce our debt over time in an accretive manner. We think that, that will also help our cash flow, just given the interest cost reduction that would be expected. And to be clear, some of the proceeds from the facility divestitures won't go towards paying off our term loan. So that would also help us with lower -- reducing our debt and also reducing our interest expenses over time.

我還認識到，我們也認識到，我們希望確保隨著時間的推移，以遞增的方式減少債務。我們認為，考慮到預期的利息成本降低，這也將有助於我們的現金流。需要明確的是，設施剝離的部分收益不會用於償還我們的定期貸款。因此，隨著時間的推移，這也將幫助我們減少債務並減少利息支出。

Your next question comes from Michael Lavery at Piper Sandler.

您的下一個問題來自 Piper Sandler 的 Michael Lavery。

I just was wondering if you could elaborate a little bit on, if you hit your plan as you have it now with EBITDA positive or breakeven by the end of the year, what does that look like on a cash flow basis? And what are some of your assumptions? You mentioned the divestitures that you're trying to make or the facility sales. Some of that's in hand, but can you give us a sense of how you're valuing those and what the certainty is of that coming through? And how important is it in terms of just your liquidity management and just paint a little bit of a picture for how you're thinking about how the year unfolds that way.

我只是想知道您能否詳細說明一下，如果您按照現在的計劃實現了 EBITDA 為正值或到年底實現盈虧平衡，那麼從現金流量的角度來看會是什麼樣子？您的一些假設是什麼？您提到了您試圖進行的資產剝離或設施銷售。其中一些已經完成，但您能否讓我們了解一下您如何評估這些以及實現這一目標的確定性是什麼？就您的流動性管理而言，它有多重要，請描繪一下您如何思考這一年如何發展的畫面。

Sure. I'll take that question. So obviously, the -- to your point, achieving our plan and reducing our cost to improve our adjusted EBITDA is kind of the starting point. In addition, we are obviously working to reduce our debt and save on interest expenses and even some of the actions that we've outlined already and have implemented already in reducing our costs. We should see on a year-over-year basis, $20-plus million of lower interest expenses even taking into consideration the rising rate environment that we're seeing across the board.

當然。我來回答這個問題。顯然，就您的觀點而言，實現我們的計劃並降低成本以改善調整後的 EBITDA 是一個起點。此外，我們顯然正在努力減少債務並節省利息支出，甚至我們已經概述並已經實施的一些行動來降低成本。即使考慮到我們全面看到的利率上升環境，我們也應該看到利息支出同比下降了 20 多萬美元。

We also expect to see working capital improvement in a significant manner just given how we're managing our inventory and the reduced footprint, frankly, that we have across Canada and obviously BioSteel working on an initiative to make sure that they're rightsized from an inventory standpoint there as well.

坦率地說，考慮到我們管理庫存的方式和減少的足跡，我們還預計營運資本將得到顯著改善，我們在加拿大各地，顯然 BioSteel 正在採取一項舉措，以確保它們的規模從庫存的觀點也在那裡。

So we think all those initiatives should allow us to get to significantly reducing our operating cash outflow. I would expect to see close to a 50% reduction in our operating cash flow on a year-over-year basis. Our CapEx requirement is really just about executing on our cost savings. So we think in FY 2024, CapEx should be somewhere in the $10 million to $15 million in terms of the cost that's inclusive of the cash cost to really execute on our cost savings program.

因此，我們認為所有這些舉措應該使我們能夠大幅減少運營現金流出。我預計我們的運營現金流將同比減少近 50%。我們的資本支出要求實際上只是為了執行我們的成本節約。因此，我們認為，到 2024 財年，就成本而言，資本支出應該在 1000 萬至 1500 萬美元之間，其中包括真正執行我們的成本節約計劃的現金成本。

And then, as I said, we've got $150 million of the proceeds that we've already closed and are expected to close in the coming months that will bring in additional cash. And then I think the other options on the table that we've outlined are these additional proceeds potentially. We are exploring various options. So we'll provide more details as we have more color, but those are all, I think, available to us as really liquidity options that we will consider.

然後，正如我所說，我們已經完成了 1.5 億美元的收益，預計將在未來幾個月內完成，這將帶來額外的現金。然後我認為我們概述的其他選項是這些潛在的額外收益。我們正在探索各種選擇。因此，隨著我們有更多的顏色，我們將提供更多細節，但我認為，這些都是我們可以考慮的真正的流動性選擇。

Your next question comes from Matt Bottomley at Canaccord Genuity.

您的下一個問題來自 Canaccord Genuity 的 Matt Bottomley。

I just wanted to go back to BioSteel. And just given a lot of the commentary that's been given with some of the positive trends with respect to the uptake of the products, whether it's in the convenience stores, gas stations, where kind of your market share is. Just that's sort of paired against the overall magnitude of some of the financial statement -- restatement. It looks like, but on a gross basis before restatement about 20% of the revenues were reduced. So I would imagine there's some big ticket items in there potentially.

我只是想回到 BioSteel。剛剛給出了很多關於產品使用方面的積極趨勢的評論，無論是在便利店、加油站，還是在你的市場份額在哪裡。這與某些財務報表的總體規模（重述）相匹配。看起來，但在重述前的總收入基礎上，大約有 20% 的收入減少了。所以我想那裡可能有一些大件物品。

So I'm just wondering if you could give a little more granularity on the nature of what the issues were with those restatements and if it has anything to do with the products in the channel that ultimately couldn't sell or shelf life or anything like that. It's just something that I get a lot of questions on, given the magnitude of what was reported today.

所以我只是想知道您是否可以更詳細地說明這些重述問題的性質，以及它是否與渠道中最終無法銷售的產品或保質期或類似的產品有關那。考慮到今天報導的規模，我對此提出了很多問題。

Sure. I'll start and David can add more color. But -- so what I said in the -- in my prepared comments, majority of the restatements really came from international sales. So when you look at all of the market share information in Canada, the U.S., that we speak about, those are real, right? I mean those are consumer takeaway numbers. They're all really sales that are -- have gone through distributors and retailers and are being sold to the consumer. So we do think that, that really demonstrates the strength of the brand in North America. When you look at the international sales, frankly, this was more of an opportunistic, I would say, outlet where BioSteel management team has decided to expand distribution in certain markets, with some of the products that they had in inventory.

當然。我先開始，大衛可以添加更多色彩。但是 - 所以我在 - 在我準備好的評論中所說的，大部分重述確實來自國際銷售。所以當你看看我們所說的加拿大、美國的所有市場份額信息時，這些都是真實的，對吧？我的意思是這些是消費者外賣數字。它們都是真正的銷售——已經通過分銷商和零售商銷售給消費者。所以我們確實認為，這確實展示了該品牌在北美的實力。當你看看國際銷售時，坦率地說，我想說，這更像是一個機會主義出口，BioSteel 管理團隊決定擴大在某些市場的分銷，其中包括他們庫存中的一些產品。

And I think -- when you think about the practices or the sales recognition issues that we have seen, that's where really the misstatements or the financial misstatements came through. So I do think that, that is very distinct from what we're seeing in the marketplace, to your point about all the market share improvement that we're seeing in that part of the business. We think it's just unfortunate that the positive momentum, it has been a bit masked by some of these unfortunate events that have occurred, but we still believe that's really a metric that people should be looking at engaging the health of the brand. We continue to be confident about the trajectory of that business.

我認為，當你考慮我們所看到的做法或銷售確認問題時，這就是錯報或財務錯報真正出現的地方。因此，我確實認為，這與我們在市場上看到的情況非常不同，正如您所說的我們在該業務部分看到的所有市場份額改善的觀點。我們認為不幸的是，積極的勢頭被發生的一些不幸事件所掩蓋，但我們仍然相信，這確實是人們應該考慮的衡量品牌健康狀況的指標。我們對該業務的發展軌跡仍然充滿信心。

Yes. I think that captures it, Judy. What I would say is the restatements, for the most part, had nothing to do with product that was returned because it was bad or anything like that. It had everything to do with sales practices within the BioSteel team, which as we called out in our remarks, have been rectified.

是的。我認為這抓住了它，朱迪。我想說的是，在大多數情況下，重述與因產品質量不好或類似情況而被退回的產品無關。這與 BioSteel 團隊內部的銷售做法有關，正如我們在評論中指出的那樣，這些做法已經得到糾正。

Your next question comes from Pablo Zuanic at Zuanic Associates.

您的下一個問題來自 Zuanic Associates 的 Pablo Zuanic。

David, I want to talk about Canopy USA. And here, maybe the simple question as -- would be remind us of the benefits of Canopy USA for the company. And the reason I ask that if I wanted to play devil's advocate, right, I could say you were supposed to -- some of the benefits in terms of alignment between Jetty, Wana and Acreage in my opinion, that could have been done without this transaction, right? The benefits from investors giving you credit for these U.S. assets are lost now because you cannot consolidate them, right? We don't know how you're going to disclose them in the future.

大衛，我想談談 Canopy USA。在這裡，也許這個簡單的問題會提醒我們 Canopy USA 為公司帶來的好處。我問的原因是，如果我想唱反調，對吧，我可以說你應該這樣做——在我看來，Jetty、Wana 和 Acreage 之間的協調帶來的一些好處，如果沒有這個也是可以實現的交易，對嗎？投資者為你提供這些美國資產的信用的好處現在已經消失了，因為你無法整合它們，對嗎？我們不知道您將來將如何披露它們。

On the other hand, this has been somewhat of a distraction, I could may be argument, right, your main competitor in Canada to control of Redecan, right? Maybe you've dropped the ball in Europe, I mean correct me if I'm wrong, and it's been disruptive, right. In the case Acreage, the CEO and the CFO are gone. So I'm just trying to -- I'm struggling to really get the benefits of Canopy U.S.A. after all is said and done.

另一方面，這有點分散了我的注意力，我可能會爭論，對吧，你們在加拿大的主要競爭對手控制著Redecan，對嗎？也許你在歐洲失敗了，我的意思是如果我錯了請糾正我，這已經造成了破壞，對吧。在 Acreage 案例中，首席執行官和首席財務官均已離職。所以我只是想——畢竟，我正在努力真正獲得 Canopy U.S.A. 的好處。

Yes. Thanks, Pablo. So a couple of points that I would make. We believe that the U.S. market is a market that we want to win in, which is why we rightsized Canada, so that we have a business where we can be profitable kind of at its current run rate. We do believe that the profit pool in the U.S. is the one that we want to attack, and we actually think that our brand-led approach is a strong approach in that market. Jetty, Wana and Acreage are already beginning to work together as you call out. So they didn't necessarily need the structure to do that, but it certainly makes it easier when that business is put together all by itself.

是的。謝謝，巴勃羅。我想提出幾點。我們相信美國市場是我們想要贏得的市場，這就是我們對加拿大進行規模調整的原因，以便我們擁有能夠以當前運行速度實現盈利的業務。我們確實相信美國的利潤池是我們想要攻擊的地方，而且我們實際上認為我們以品牌為主導的方法在該市場是一種強有力的方法。當您呼喊時，Jetty、Wana 和 Acreage 已經開始合作。因此，他們不一定需要這樣的結構來做到這一點，但當該業務完全獨立起來時，它肯定會讓事情變得更容易。

So those businesses are merged together. There are significant synergies to be extracted from an operating standpoint, from a public company standpoint that we think are important. Now we will be able to disclose what that business looks like. We won't be consolidating it through our results, but we will be in a position to talk about what our consolidated -- what our Canopy USA as its own consolidated entity will look like post the transaction once those businesses have been merged.

因此，這些業務被合併在一起。從我們認為重要的運營角度和上市公司的角度來看，可以產生顯著的協同效應。現在我們將能夠披露該業務的情況。我們不會通過我們的業績來整合它，但我們將能夠談論我們的整合——一旦這些業務被合併，我們的 Canopy USA 作為自己的整合實體在交易後將會是什麼樣子。

And then Pablo, again, it's like -- the good thing about strategy is -- a good strategy usually is one that you could do the opposite of and still find it a fair strategy, right? So we believe that focus on the U.S. is better than trying to expand into other markets or into other categories. Judy mentioned how we want to simplify our business to be a very cannabis-focused business and very focused on North America. We think that's a good -- that provides a great path for us to create a lot of value in the medium term. And so that's the -- I guess, that's the position that we've taken. And we think we still believe that it's the right approach for us.

然後巴勃羅，再說一次，這就像——策略的好處是——一個好的策略通常是你可以採取相反的策略，但仍然認為它是一個公平的策略，對嗎？因此，我們認為專注於美國比嘗試擴展到其他市場或其他類別更好。朱迪提到我們希望如何簡化我們的業務，使其成為一家非常專注於大麻且非常專注於北美的業務。我們認為這是一件好事，它為我們在中期創造大量價值提供了一條很好的道路。我想這就是我們所採取的立場。我們認為我們仍然相信這對我們來說是正確的方法。

Your next question comes from Doug Miehm at RBC Capital Markets.

您的下一個問題來自 RBC 資本市場的 Doug Miehm。

My question really has to do with the checks and balances that the company might have in place as it relates to oversight functions given the material changes that we're seeing right now. And really in place to ensure that you don't have any unforeseen potholes or bumping into sharp objects. David, maybe you could talk about what you're doing to implement those types of checks and balances to ensure that we don't run into other issues?

我的問題實際上與公司可能建立的製衡有關，因為它與我們目前看到的重大變化的監督職能有關。並且真正到位，確保您不會遇到任何不可預見的坑洼或撞到尖銳的物體。大衛，也許你可以談談你正在採取哪些措施來實施這些類型的製衡，以確保我們不會遇到其他問題？

Yes, that's a really good question, Doug. And what I would say is that we're -- so we have a complete remediation fund, which is called out in the K for the issues we experienced with BioSteel. We did do additional testing around the rest of our business to make sure that the BioSteel issues weren't being replicated elsewhere and that testing proved that it wasn't happening elsewhere. Again, it was -- this was a very involved process that included forensic accountants, outside legal experts, our own finance team, the dedication of our Audit Committee, which includes 2 former public company CFOs.

是的，這是一個非常好的問題，道格。我想說的是，我們有一個完整的補救基金，該基金在 K 中用於解決我們在 BioSteel 中遇到的問題。我們確實對我們的其他業務進行了額外的測試，以確保 BioSteel 問題不會在其他地方重複，並且測試證明其他地方沒有發生這種情況。再說一次，這是一個非常複雜的過程，包括法務會計師、外部法律專家、我們自己的財務團隊、我們的審計委員會（其中包括兩名前上市公司首席財務官）的奉獻精神。

So we did a ton of work to make sure that we got completely to the bottom of the issues that required the restatement. And as I said in the K, we call out our remediation plans and our Audit Committee has asked for check-ins on a biweekly basis with our progress toward those remediation plans, which we will, in fact, do. And I would say that then beyond that, several years ago, I think that the Canopy finance functioning was maybe in a difficult spot to take on the complexity of the business that we have. I would say that over the last few years, we've built what is generally a strong talented team that's clearly committed to ensuring that we have a robust control environment.

因此，我們做了大量的工作，以確保我們完全了解需要重述的問題的真相。正如我在 K 中所說，我們提出了我們的補救計劃，我們的審計委員會已要求每兩週檢查一次我們在實施這些補救計劃方面的進展情況，事實上，我們將會這樣做。我想說的是，除此之外，幾年前，我認為 Canopy 的財務運作可能處於一個難以應對我們業務複雜性的境地。我想說的是，在過去的幾年裡，我們已經建立了一支強大的人才團隊，明確致力於確保我們擁有一個強大的控制環境。

As a former public company CFO, I'm embarrassed that we had a -- that we had to do a restatement. And we -- as I said, we've taken the actions to remediate that -- the items that caused that restatement and I do not expect us to have that kind of issue in any area of our control environment going forward.

作為一名前上市公司首席財務官，我感到很尷尬，因為我們必須進行重述。正如我所說，我們已經採取行動來糾正導致重述的項目，我預計我們未來的控制環境的任何領域都不會出現此類問題。

There are no further questions at this time. So I will turn the conference back to Mr. Klein for any final remarks.

目前沒有其他問題。因此，我將把會議轉回由克萊因先生髮表最後的評論。

Yes. Thank you, and thanks all for joining us today. So to highlight the key takeaways from today's call. We've made substantial progress in transforming our Canadian cannabis business during fiscal '23. And we've entered fiscal '24 focused on strengthening the business moving forward. We've completed the BioSteel review and expect the fiscal '24 strategy to drive growth of the brand in North America while reducing our cash burn. And in fiscal '23, we introduced our Canopy USA strategy to optimize the value of our entire U.S. ecosystem, and we look forward to successfully concluding the regulatory review and progressing to a shareholder vote in the coming months.

是的。謝謝大家，也感謝大家今天加入我們。因此，我們要強調今天電話會議的主要要點。在 23 財年，我們在加拿大大麻業務轉型方面取得了實質性進展。我們已進入 24 財年，重點關注加強業務發展。我們已經完成了 BioSteel 審查，並預計 24 財年戰略將推動該品牌在北美的增長，同時減少我們的現金消耗。在 23 財年，我們推出了 Canopy USA 戰略，以優化整個美國生態系統的價值，我們期待在未來幾個月內成功完成監管審查並進行股東投票。

And finally, we continue to believe Canopy has significant opportunity ahead, both in Canada and the United States. Investor Relations will be available to answer additional questions. Have a good evening.

最後，我們仍然相信 Canopy 在加拿大和美國都擁有巨大的機遇。投資者關係部將回答其他問題。祝你晚上愉快。

Ladies and gentlemen, this concludes Canopy Growth's Fourth Quarter and Fiscal 2023 Financial Results Conference Call. A replay of this conference call will be available until September 20, 2023, and can be accessed following the instructions provided in the company's press release issued earlier today.

女士們先生們， Canopy Growth 第四季度和 2023 財年財務業績電話會議到此結束。本次電話會議的重播將持續到 2023 年 9 月 20 日，並且可以按照今天早些時候發布的公司新聞稿中提供的說明進行訪問。

Thank you for attending today's call, and enjoy the rest of your day. You may now disconnect your lines.

感謝您參加今天的電話會議，祝您度過愉快的一天。您現在可以斷開線路。