Aurora Cannabis Q1 Financials Show Improvement: Stock Jumps 18%

Aurora Cannabis Inc. (Nasdaq: ACB) | (TSX: ACB), announced its financial and operational results for the fiscal first quarter ended September 30, 2022 last Thursday, as follows:

Q1 Financial Highlights 

(The information below compares Q1 2023 with Q4 2022 and all figures are in Canadian dollars.)

• Net Revenue: DOWN 1.9% to $49.6M
  • • Adj. Gross Margin: UP to 54% from 52%
  • Medical: DOWN 13.7% to $31.7M
    • Adj. Gross Margin: UP to 67% from 62%
  • Recreational: UP 8.5% to $13.7M
    • Adj. Gross Margin: DOWN to 25% from 26%
  • Beverage: $3.3M
  • Other: $0.9M
• Gross Profit: UP to $10.1M from $(1.6)M
• SG&A Exp.: DOWN 10.0% to $42.2M
• R&D Exp.: DOWN 34.7% to $1.6M
• Adj. EBITDA: Loss declined 24.8% to $(8.7)M
• Net Loss: DOWN to $(51.9)M from $(618.8)M which was primarily due to $536.2 million in non-cash impairment charges that were recognized in Q4 2022. 
• Cash on Hand: DOWN 12.4% to $428.2M

Management Commentary

Miguel Martin, Chief Executive Officer, stated:

• “We..are on track to achieve up to $170 million in annualized cost savings by December 31, 2022, having already realized $140 million through Q1 2023.
• Our strengthened balance sheet and strong cash position has facilitated early repurchases of convertible debt of approximately US$160 million in 2022...
• Disciplined capital deployment, and the completion of our cost structure rationalization...[have us] well-positioned to enhance the long-term value of our differentiated global cannabis company...
• We continue to identify areas of profitability and growth within the Canadian adult recreational segment, even in the face of a challenging environment, and are proud to have introduced a significant number of new products this fall that will benefit both our adult recreational customers and medical patients.”

Fiscal Q2 2023 Expectations:

• expects to achieve its goal of reaching Adjusted EBITDA profitability by December 31, 2022.
• expects cannabis revenue for fiscal Q2 2023 to be largely similar to fiscal Q4 2022. 
• expects Adjusted Gross Margins to be consistent with fiscal Q1 2023.
• expects to achieve its previously stated objective of a quarterly SG&A expense run rate below $30 million by December 31, 2022.

Stock Performance

The stock price had been relatively stable since the end of June but has jumped 18% since the Q1 financials were released.

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