David Klein: So, as we indicated in our remarks, we’ll be filing our definitive proxy this week and all of the information that you could want to know will be available in that. And we will be filing financial statements once we close for Canopy USA, even though as you said it won’t be consolidated into our financial results. So, our investors will see the entire picture in those financial statements. I also want to make sure that whenever we talk about Canopy USA that we’re talking about the benefit of Canopy USA. So, I know there’s just a lot of interest in terms of how we will structure that business. But for me, the benefit is really having some really strong brands combined with capabilities in some really big markets to create a real focused brand led sort of business in the U.S. which is an extremely attractive and profitable cannabis market.
Judy Hong: The only thing I would also just that is, even though Canada people will not be consolidating the interest in Canopy USA, I think you know that Canopy growth will own a significant financial interest in Canopy USA. So really the benefits of Canopy USA creating value by owning an operating platform once they’re able to exercise the options and trigger on owning one Acreage, the value creation at Canopy USA, we think it’s really an attractive proposition for Canopy growth shareholders as well.
Aaron Grey: Thanks for that color. Appreciate that. And definitely look forward to talking more about the performance of the business versus the optics of how it’s disclosed on the financials. Quick second one for me, if I could. Just in terms of the guidance to you know, reach even a profitability as you exit the fiscal year, just if you could help us maybe triangulate some of the drivers to reach an EBITDA profitability as you exit the year. You’d invest into This Works business that had healthy gross margins, but not sure if it was a drag at the EBITDA level. And other notable drivers talked about the cost savings, you’ve now had $262 million cumulative versus I believe, $227 million last quarter. So, just if you could help us foot, you know, how you’re reaching that in terms of potential gross margin, or SG&A savings and start to actually flow through the P&L and help us reset. I think that’d be very helpful there. Thank you.
Judy Hong: Sure. So, I’d say there are few levers. One is, I think we do have some remaining cost savings that are left in the program, we remain confident that we’ll fully execute and generate those savings in the coming months. The second driver is look, I think our businesses are now really delivering profitable growth. So as top line grows, and gross margin improves, even with our base businesses, even without some of the cost reductions that we’ve announced previously, we now have a right sized cost structure that those top line revenues should really drive a stronger EBITDA growth going forward. So I say that’s, that’s the second driver is really the strong base business growth that we continue to expect to be sustained on a go forward basis.
And then lastly, we are looking at continued efficiencies across our Austin, particularly looking at some of the G&A on the corporate cost side. So we do think that there’s opportunities to continue to streamline our corporate costs to make sure that we are looking at really a positive adjusted EBITDA on a going forward basis for all of our business units. We’re still finalizing our fiscal ’25 plan. So we’ll provide more details on the profitability outlook for fiscal ’25, as we report our Q4 results in May.
Aaron Grey: Okay, great, thanks for the detail. That’s really helpful. I’ll go and jump back into the queue.
Operator: Thank you. The next question comes from John Zamparo from CIBC. Please go ahead.
John Zamparo : Good morning. I wanted to ask about STORZ & BICKEL. And I appreciate the sequential improvements. Sounds like you’re very excited about this business and new products that are coming out. But the revenue was down 8% year-over-year, presumably that’s with some pricing embedded into it. And that included a product launch. So I’m just wondering if you could add some color on that business and provide some framework on what you expect from it in calendar ’24.
David Klein: Yes, so John. Like this just kind of set the stage want to point out that Storz & Bickel has doubled in the past four years, doubled at the top line level. So, we’re seeing reasonably consistent growth across the business. I would say that our results in Q3 were held back a little bit, by the late launch of VENTY, which happened late in the quarter. And so there was a fair amount of production activity and programming activity around the VENTY launch. And we exited the quarter with a substantial backlog of units, which we’re working our way through right now. So, over its history, we see growth coming from STORZ & BICKEL from new product launches, like the VENTY launch. And we’ve also seen growth from STORZ & BICKEL as a result of distribution growth.
And as you know, the U.S., China distribution tier, it has been under duress for the last couple of years that meaning the tier that takes products into vape shops across the United States. And that’s caused us some, some pain over time. But we think that we can get back into distribution growth in the U.S in the near future. And then combined with the launch of the Venty and some potential future innovation, we think the prospects are very bright for that brand. I’ll also point out that when we launch a brand, like Venty, that is margin expanding, because we set up the new launches, so that it improves the overall mix.
