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Segment Information
 9 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information

30. SEGMENT INFORMATION

Reportable segments

 

Prior to the three months ended September 30, 2022, the Company had the following two reportable segments: (i) global cannabis; and (ii) other consumer products. Following the completion of certain restructuring actions which were initiated in the three months ended March 31, 2022, and which were aligned with the Company's strategic review of its business, the Company has changed the structure of its internal management financial reporting. Accordingly, in the three months ended September 30, 2022, the Company began reporting its financial results for the following five reportable segments:

 

•
Canada cannabis - includes the production, distribution and sale of a diverse range of cannabis, hemp and cannabis products in Canada pursuant to the Cannabis Act;
•
Rest-of-world cannabis - includes the production, distribution and sale of a diverse range of cannabis, hemp and cannabis products internationally pursuant to applicable international legislation, regulations and permits;
•
Storz & Bickel - includes the production, distribution and sale of vaporizers;
•
BioSteel - includes the production, distribution and sale of consumer packaged goods ("CPG") including sports nutrition beverages, mixes, protein, gum and mints, some of which have been blended with hemp-derived CBD isolate; and
•
This Works - includes the production, distribution and sale of beauty, skincare, wellness and sleep products, some of which have been blended with hemp-derived CBD isolate.

 

These segments reflect how the Company's operations are managed, how the Company's Chief Executive Officer, who is the Chief Operating Decision Maker (“CODM”), allocates resources and evaluates performance, and how the Company's internal management financial reporting is structured. The Company's CODM evaluates the performance of these segments, with a focus on (i) segment net revenue, and (ii) segment gross margin as the measure of segment profit or loss. Accordingly, information regarding segment net revenue and segment gross margin for the comparative periods has been restated to reflect the aforementioned change in reportable segments. The remainder of the Company's operations include revenue derived from, and cost of sales associated with, the Company's non-cannabis extraction activities and other ancillary activities; these are included within "other".

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Segmented net revenue

 

 

 

 

 

 

 

 

 

 

 

 

Canada cannabis

 

$

46,617

 

 

$

60,678

 

 

$

151,336

 

 

$

205,879

 

Rest-of-world cannabis

 

 

5,846

 

 

 

22,299

 

 

 

30,179

 

 

 

65,362

 

Storz & Bickel

 

 

20,214

 

 

 

25,205

 

 

 

49,351

 

 

 

63,786

 

BioSteel

 

 

16,363

 

 

 

16,974

 

 

 

64,173

 

 

 

31,147

 

This Works

 

 

8,289

 

 

 

10,730

 

 

 

20,677

 

 

 

26,308

 

Other

 

 

3,884

 

 

 

5,086

 

 

 

13,475

 

 

 

16,073

 

 

 

$

101,213

 

 

$

140,972

 

 

$

329,191

 

 

$

408,555

 

Segmented gross margin:

 

 

 

 

 

 

 

 

 

 

 

 

Canada cannabis

 

$

(5,281

)

 

$

(13,121

)

 

 

(25,466

)

 

$

(97,925

)

Rest-of-world cannabis

 

 

(2,184

)

 

 

4,660

 

 

 

(3,676

)

 

 

24,245

 

Storz & Bickel

 

 

9,186

 

 

 

11,172

 

 

 

20,809

 

 

 

27,623

 

BioSteel

 

 

(7,669

)

 

 

1,352

 

 

 

(804

)

 

 

(2,361

)

This Works

 

 

4,032

 

 

 

5,469

 

 

 

8,982

 

 

 

12,423

 

Other

 

 

(525

)

 

 

558

 

 

 

143

 

 

 

2,183

 

 

 

 

(2,441

)

 

 

10,090

 

 

 

(12

)

 

 

(33,812

)

Selling, general and administrative expenses

 

 

122,636

 

 

 

116,835

 

 

 

351,891

 

 

 

355,165

 

Share-based compensation

 

 

6,428

 

 

 

6,777

 

 

 

21,725

 

 

 

35,856

 

Asset impairment and restructuring costs

 

 

22,259

 

 

 

36,439

 

 

 

1,794,212

 

 

 

128,198

 

Operating loss

 

 

(153,764

)

 

 

(149,961

)

 

 

(2,167,840

)

 

 

(553,031

)

Loss from equity method investments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(100

)

Other income (expense), net

 

 

(113,340

)

 

 

34,282

 

 

 

(406,762

)

 

 

810,769

 

(Loss) income before incomes taxes

 

$

(267,104

)

 

$

(115,679

)

 

$

(2,574,602

)

 

$

257,638

 

 

Asset information by segment is not provided to, or reviewed by, the Company’s CODM as it is not used to make strategic decisions, allocate resources, or assess performance.

 

Entity-wide disclosures

Disaggregation of net revenue by geographic area:

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Canada

 

$

65,851

 

 

$

78,644

 

 

$

226,312

 

 

$

241,440

 

Germany

 

 

12,772

 

 

 

23,143

 

 

 

36,383

 

 

 

71,619

 

United States

 

 

10,292

 

 

 

22,764

 

 

 

30,688

 

 

 

60,856

 

Other

 

 

12,298

 

 

 

16,421

 

 

 

35,808

 

 

 

34,640

 

 

 

$

101,213

 

 

$

140,972

 

 

$

329,191

 

 

$

408,555

 

 

Disaggregation of property, plant and equipment by geographic area:

 

 

 

December 31,

 

 

March 31,

 

 

 

2022

 

 

2022

 

Canada

 

$

726,613

 

 

$

827,591

 

United States

 

 

96,159

 

 

 

63,247

 

Other

 

 

51,257

 

 

 

51,942

 

 

 

$

874,029

 

 

$

942,780

 

 

 

For the three months ended December 31, 2022, no customer represented more than 10% of the Company’s net revenue (three months ended December 31, 2021 – none).

 

For the nine months ended December 31, 2022, no customer represented more than 10% of the Company's net revenue (nine months ended December 31, 2021 – one)