Investor Presentaiton
BUSINESS TRANSFORMATION: DROVE SIGNIFICANT IMPROVEMENT IN
GROSS MARGINS AND REDUCED CASH BURN IN Q2 FY2024
Actions Taken
Completed structural transformation to
cannabis-focused, asset-light business
• Eliminated significant cash burn and further
focused on cannabis operations by ceasing
funding of BioSteel business
•
.
Delivered additional cost reduction of $54 MM
in Q2 FY2024, bringing the total cost reduction
to $226 MM since the beginning of FY2023
Management is tightening its previously announced
cost reduction target to $270 MM - $300 MM.
Reduced overall debt by $364 MM to $681 MM
in Q2 FY2024; Total debt reduction of
approximately $1 BN delivered since the
beginning of Fiscal 2023.
Results Achieved
~$80M
Cost of Goods Sold ("COGS")
reduction since beginning of
FY2023
40%
30%
20%
10%
0%
Canadian Cannabis
Gross Margin
36%
~80%
Q2 FY2024 year-over-year
Adjusted EBITDA loss reduced
Consolidated
Adjusted EBITDA¹
($CAD'MM)
(12)
(10)
(20)
(30)
(40)
(50)
-15%
(60)
-20%
(56)
Q2 FY23
Q2 FY24
Q2 FY23
Q2 FY24
-10%
Management reaffirms expectation to achieve positive Adjusted EBITDA in all business units exiting FY2024
1 Adjusted EBITDA is a Non-GAAP measure. See Non-GAAP measure section in the Disclaimers and Cautionary Statements section of this Presentation..
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