Aurora Cannabis Posts 45% Lower Quarterly Revenue, Citing Pandemic Outbreak

Nina Zdinjak , Benzinga Staff Writer

September 28, 2021 8:09am Comments

Aurora Cannabis Posts 45% Lower Quarterly Revenue, Citing Pandemic Outbreak

Canadian cannabis giant Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) posted its earnings for the fourth quarter and full fiscal year ended June 30, 2021, reporting on Monday a total quarterly net revenue of CA$54.83 million ($43.4 million) compared to CA$68.43 million in the same period of 2020.

Q4 Financial Summary

Adjusted EBITDA for the period was a loss of CA$19.26 million, which compares to a loss of CA$33.35 million in the corresponding period of the prior year;
Quarterly net loss reached CA$133 million, compared to CA$160 million in the prior quarter and to CA$1.8 billion in the fourth quarter of 2020.
Medical cannabis net revenue reached CA$35.9 million, up by 8% from the same quarter of last year, while adjusted gross margin before fair value adjustments on it was 68%, versus 64% in the prior year;
Consumer cannabis net revenue declined 45% to CA$19.5 million from the prior-year period, while adjusted gross margin before fair value adjustments on cannabis net revenue was 54% in Q4 2021 versus 49% in the prior-year period; This was due primarily to a reduction in orders from provinces in response to slower consumer demand, reflecting the impact of lockdown restrictions related to COVID-19;
At the end of the reporting period, on June 30, Aurora had a cash balance of around CA$440.9 million, consisting of CA$421.5 million of cash and CA$19.4 million in restricted cash; It had no secured term debt and access to $1 billion of capital under its shelf prospectus.

Full Year Financial Highlights

In the full year ended June 30, 2021, Aurora had a net loss of CA$693.48 million, which compares to a whopping net loss of CA$3.2 billion in the prior fiscal year;
Adjusted EBTIDA for the 12-month period was a loss of CA$114.13 million, versus a loss of CA$188.58 million in the same period of last year.

"During the quarter, we delivered another strong yet steady performance in domestic medical, the largest federally regulated medical market globally, exceptional year-over-year growth in our high-margin international medical segment, where we remain the #2 Canadian LP by revenue on a trailing twelve-month basis, and quarterly sequential growth in adult recreational which included higher sales of premium cultivar,” Miguel Martin, CEO of Aurora Cannabis stated.

Martin went on to announce a long-term supply partnership with Cantek in Israel that should provide the company “with a steady stream of high-margin revenue that could also evolve into a larger partnership over time.”

In addition, the company reported cash savings of $60 million to $80 million and noted it is expecting to deliver $30 million to $40 million of annualized cash savings within the next year, and the remainder by the end of Q2 fiscal 2023.