Mr. Miguel Martin reports
AURORA CANNABIS ANNOUNCES FISCAL FIRST QUARTER 2021 RESULTS
Aurora Cannabis Inc. has provided its financial and operational results for the first quarter of fiscal 2021 ended Sept. 30, 2020.
"We continue to take the necessary steps to execute our plan and transform our business to achieve sustainable profitability, and ultimately positive cash flow," stated Miguel Martin, chief executive officer of Aurora Cannabis. "Our Q1 2021 results are transitional but do highlight successes across a number of diverse profit pools. We remain the leader by revenue in the high-margin Canadian medical market, our international medical business experienced more than 40-per-cent net revenue growth this quarter and our CBD brand Reliva is No. 1 ranked by Nielsen in the U.S. CBD sector.
"While we are not satisfied with our past performance in the growing Canadian consumer business, we have a sense of urgency in the execution of our tactical plan to grow profitable market share. Our efforts are directed at delivering the highest quality products, refocusing on our leading premium and ultrapremium brands, better allocating our sales and marketing spend, and executing key account partnerships at both the province and retail levels.
"We have also taken action to improve our liquidity and strengthen our balance sheet. It was a responsible decision to raise capital using our ATM in today's environment and the cash is expected to ensure we have the runway needed to compete with our peers. Cannabis companies are being evaluated on both their business performance and liquidity and we wanted to ensure that we are addressing both. I remain confident in Aurora's prospects and it is my utmost priority to secure our winning future."
First quarter 2021 highlights
(unless otherwise stated, comparisons are made between fiscal Q1 2021 and Q4 2020 results)
- Q1 2021 total and cannabis net revenue was $67.8-million, a slight increase from the $67.5-million of cannabis net revenue in the prior quarter.
- Adjusted gross margin before fair value adjustments on cannabis net revenue remained strong at 48 per cent, versus 50 per cent in Q4 2020. Excluding $2.6-million of ramp-up costs at Aurora Nordic 1, the company's Q1 2021 adjusted gross margin before fair value adjustments on cannabis net revenue was 52 per cent.
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss was $57.9-million in Q1 2021, which includes restructuring payments such as contract and employee termination costs of $47.4-million. Excluding these impacts, the company's adjusted EBITDA loss, as defined under the term credit facility, is $10.5-million. Aurora was in full compliance with its Sept. 30, 2020, term debt covenants. As a reminder, the company's goal is to achieve positive adjusted EBITDA in Q2 2021.
- Cash balance at Nov. 6, 2020, was approximately $250-million.
Consumer cannabis net revenue was $34.3-million, a 3-per-cent decrease from the prior quarter. Of note, Aurora's consumer cannabis extract net revenue increased by $3.6-million as compared with the prior quarter, driven by Aurora's focus on high-growth extract segments such as vapes, edibles and concentrates, and a $1.1-million increase in U.S. CBD (cannabidiol).
Adjusted gross margin before fair value adjustments on consumer cannabis net revenue was 38 per cent in Q1 2021 versus 35 per cent in the prior quarter, primarily driven by sales mix shifting toward higher margin derivative products.
Q1 2021 KEY FINANCIAL AND OPERATIONAL METRICS
(in thousands of dollars, except operational results)
Q1 2021 Q4 2020
Total net revenue $67,812 $68,728
Cannabis net revenue $67,812 $67,492
Medical cannabis net revenue $33,474 $32,226
Consumer cannabis net revenue $34,338 $35,266
Adjusted gross margin before FV adjustments on cannabis net revenue 48% 50%
Adjusted gross margin before FV adjustments on medical cannabis net revenue 59% 67%
Adjusted gross margin before FV adjustments on consumer cannabis net revenue 38% 35%
SG&A expense $44,324 $58,870
R&D expense $2,584 $7,646
Adjusted EBITDA $(57,891) $(32,263)
Operational results -- cannabis
Average net selling price of dried cannabis $3.72 $3.60
Kilograms sold 16,139 16,748
Aurora will host a conference call today, Nov. 9, 2020, to discuss these results. Miguel Martin, chief executive officer, and Glen Ibbott, chief financial officer, will host the call starting at 8:30 a.m. Eastern Time. A question-and-answer session will follow management's presentation.
Date: Monday, Nov. 9, 2020
Time: 8:30 a.m. Eastern Time, 6:30 a.m. Mountain Time
Webcast: available on-line
About Aurora Cannabis Inc.
Aurora is a global leader in the cannabis industry serving both the medical and consumer markets. Headquartered in Edmonton, Alta., Aurora is a pioneer in global cannabis dedicated to helping people improve their lives. The company's brand portfolio includes Aurora, Aurora Drift, San Rafael '71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler and Reliva. Providing customers with innovative, high-quality cannabis and hemp products, Aurora's brands continue to break through as industry leaders in the medical, performance, wellness and recreational markets wherever they are launched.
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.