Mr. Miguel Martin reports

AURORA CANNABIS ANNOUNCES FISCAL 2024 FIRST QUARTER RESULTS, AND DELIVERS RECORD POSITIVE ADJUSTED EBITDA

Aurora Cannabis Inc. has released its financial and operational results for the first quarter of fiscal year 2024. As the fiscal year 2023 consisted of three quarters, the year-over-year comparison quarter for Q1 2024 ended June 30, 2023, is fourth quarter 2022 ended June 30, 2022.

"We are pleased to have generated strong net revenue (1) and record adjusted [earnings before interest, taxes, depreciation and amortization] (1) during Q1, which positions us well for what we believe will be a successful fiscal year 2024," stated Miguel Martin, chief executive officer of Aurora Cannabis. "We have built a differentiated and growing business that is diversified across key global cannabis and non-cannabis platforms, and I am truly delighted with the strong performance across all our business units. Following the previously announced $40-million in annualized cost-efficiencies in fiscal 2024, I believe we are in a strong position to grow and deliver profitable results to support our target of positive free cash flow," continued Mr. Martin.

First quarter 2024 highlights (unless otherwise stated, comparisons are made between fiscal first quarter 2024, third quarter 2023 and fourth quarter 2022 results)

Consolidated revenue and adjusted gross profit

Total net revenue (1) was $75.1-million, as compared with $50.1-million in the prior-year period. The increase from the prior period is mainly due to growth in its global medical cannabis business and a record-high quarterly revenue in its plant propagation business.

Excluding the impact of the non-core bulk wholesales, adjusted gross margin before fair value adjustments (1) on cannabis net revenue (1) for Q1 2024 remained strong and steady, and well above the industry average at 53 per cent.

Consolidated adjusted gross margin before fair value adjustments (1) was 44 per cent in Q1 2024 (Q4 2022: 50 per cent). Adjusted gross profit before FV adjustments (1) was $32.6-million in Q1 2024 (Q4 2022: $25.8-million), an increase of 26 per cent.

Net loss

Net loss for the three months ended June 30, 2023, was $28.3-million compared with $618.8-million in the prior-year quarter. The decrease in net loss of $590.4-million from the same period in the prior year was primarily due to a decrease in other expenses of $552.3-million, primarily consisting of: (i) a decrease of $457.5-million in impairment of intangible assets and goodwill; (ii) a decrease of $78.7-million in impairment of property, plant and equipment; (iii) an increase in gross profit of $17.9-million; and (iv) lower operating expenses of $26.1-million.

(1) This press release includes certain non-generally accepted accounting principle financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures.

Fiscal 2024 expectations

In second quarter fiscal 2024:

• The company expects cannabis net revenue (1) to be largely similar to fiscal Q1 2024, with the geographical mix slightly weighted further toward the international medical segment.
• For plant propagation, it expects to see seasonally reduced revenues and gross profit in Q2 2024 that will be in line with historical performance as 25 per cent to 35 per cent of revenues are normally earned in the second half of a calendar year.

Through the rest of fiscal 2024:

• Aurora Cannabis is realizing the benefit of its long-term commitment to science and quality cultivation in that demand for the company's products globally is beginning to outpace supply. Aurora Cannabis is focused on increasing profitable revenue across all business units, but in particular to fully supply the growing demand now evident in Aurora Cannabis's international medical business as the company's leading new cultivars have been introduced to its international channels.
• In plant propagation, in addition to the normal seasonal cadence of the base business, the company expects first sales of orchids from the 800,000-square-foot Sky facility to occur in third quarter of this fiscal year and for the 1.6-million-square-foot Aurora Cannabis Sun facility to be contributing to the topline at the start of the next fiscal year.

Aurora Cannabis's achievement of significant and sustainable operating cost and selling, general and administrative reductions has resulted in three consecutive quarters with positive adjusted EBITDA. This has paved the path toward positive free cash flow in calendar year 2024.

Conference call

Aurora Cannabis will host a conference call today, Thursday, Aug. 10, 2023, to discuss these results. Mr. Martin, and Glen Ibbott, chief financial officer, will host the call starting at 5 p.m. Eastern Time or 3 p.m. Mountain Time. A question-and-answer session will follow management's presentation.

Conference call details

Date:  Thursday, Aug. 10, 2023

Time:  5 p.m. Eastern Time or 3 p.m. Mountain Time

A webcast will be available.

A Web link has also been posted to the company's website under events.

About Aurora Cannabis Inc.

Aurora Cannabis is opening the world to cannabis, serving both the medical and consumer markets. Headquartered in Edmonton, Alta., Aurora Cannabis is a pioneer in global cannabis, dedicated to helping people improve their lives. The company's adult-use brand portfolio includes Aurora Drift, San Rafael '71, Daily Special, Whistler, Being and Greybeard. Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co., as well as international brands, Pedanios, Bidiol and CraftPlant. Aurora Cannabis also has a controlling interest in Bevo Farms Ltd., North America's leading supplier of propagated agricultural plants. Driven by science and innovation and with a focus on high-quality cannabis products, Aurora Cannabis's brands continue to break through as industry leaders in the medical, performance, wellness and adult recreational markets wherever they are launched. Aurora Cannabis's common shares trade on the Nasdaq and the Toronto Stock Exchange under the symbol ACB.

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