[ad_1]
Aurora Cannabis Inc. ACB ACB, a Canadian global company in the cannabis industry, serving both the medical and consumer markets; recently announced its financial and operational results for the fourth quarter and fiscal year ending June 30, 2022.
Fourth Quarter 2022 Highlights:
Medical Cannabis:
- Medical cannabis net revenue was $36.6 million, a 4% increase from the prior year period, delivering 72.8% of Aurora’s Q4 2022 consolidated net revenue1 and 86.3% of adjusted gross profit before fair value adjustments1.
- The increase in revenue was driven by growth in the international medical business, up 35.4% from the prior year’s quarter which was attributed primarily to the Company’s increasing presence in key emerging international medical cannabis markets.
- Adjusted gross margin before FV adjustments on medical cannabis net revenue1 was 62% compared to 68% in the prior year period and 64% sequentially.
Consumer Cannabis:
- Consumer cannabis net revenue1 was $12.6 million, as compared to the prior quarter’s net revenue of $10.3 million. The 22.2% increase was primarily due to the addition of Thrive’s consumer cannabis net revenues1 of $1.4 million for the period from May 6, 2022, to June 30, 2022.
- Adjusted gross margin before FV adjustments on consumer cannabis net revenue1 was 26% for the three months ended June 30, 2022, compared to 29% in the prior quarter and 31% in the comparable prior year period.
Selling, General, and Administrative (“SG&A”):
- SG&A, including Research and Development (“R&D”), was $49.3 million in Q4 2022 which includes $6.8 million of restructuring-related costs, $2.3 million of prior period regulatory fee accruals, and $1.1 million in a non-recurring project and litigation costs.
Consolidated:
- Q4 2022 total cannabis net revenue1 was $50.2 million, as compared to the prior quarter’s total cannabis net revenue1 of $50.4 million.
- Adjusted gross margin before FV adjustments on cannabis net revenue1 was 52% in Q4 2022 versus 57% in the prior quarter and 54% in Q4 2021.
- Adjusted EBITDA1 loss increased to $12.9 million in Q4 2022 versus $11.4 million in Q3 2022 but narrowed from $21.8 million in the prior year period. The increased adjusted EBITDA1 loss as compared to the previous quarter is driven mostly by the $3.4 million reduction in adjusted Gross Margin before FV adjustments1 resulting primarily from a change in the Company’s sales channel mix which yielded lower average net selling prices.
Net Loss for Q4 2022 was $618.8 million compared to $134.0 million for the same period in the prior year. “The increase in net loss was primarily due to non-cash impairment charges of $505.1 million recorded in other income (expense) during the current quarter to write down goodwill, intangible assets, and property, plant, and equipment,” reads a press release.
Operational Efficiency Plan, Balance Sheet Strength, & Cash Use:
According to the earning report, Aurora has “previously identified annualized cash savings of up to $170 million in cash savings under this transformation program by the end of December 2022, split approximately evenly between costs of goods sold (“COGS”) and SG&A.” “On June 30, 2022, the Company had $488.8 million of cash, including $51.0 million in restricted cash, and no secured term debt.”
In addition, Miguel Martin, CEO of Aurora said that they “continue to enhance the long-term value of our differentiated global cannabis business by quickly identifying highly profitable growth opportunities, deploying capital in a disciplined manner, and continuing to rationalize our cost structure.”
He continued saying the company expects a positive adjusted EBITDA run rate by December 31, 2022, and “remains on track with our previously announced cost-saving targets of up to $170 million in annualized savings.”
Finally, he added that Aurora’s investment in science “is beginning to pay dividends.” “We delivered nine new proprietary cultivars to market during the year, providing rotation and variety to consumers and driving meaningful improvements in yield,” Martin concluded.
Image by Benzinga
[ad_2]
Image and article originally from www.benzinga.com. Read the original article here.