Photo by David Gabrić on Unsplash

The information below compares Q3 2023 ended March 31st, 2023 with Q2 2023 and all figures are in Canadian dollars. Go here to convert into another currency. As a reminder, fiscal 2023 is comprised of three (3) quarters ending March 31st, 2023.

Q3 Financial Highlights 

• Net Revenue: UP 3.7% to $64.0M
  • • Adj. Gross Margin: UP to 51% from 49%
  • Medical: DOWN 3.8% to $38.0M
    • Adj. Gross Margin: DOWN to 60% from 61%
  • Recreational: DOWN 0.7% to $14.5M
    • Adj. Gross Margin: UP to 25% from 20%
  • Bevo Division: UP 63.6% to $10.8M
  • Other: DOWN 30.0% to $0.7M
• SG&A (incl. R&D) Exp.: UP 6.8% to $28.4M
• Adj. EBITDA: DOWN 78.6% to $1.4M from $(1.4)M
• Net Loss: UP 29.5% to $(87.0)M 
• Cash on Hand: DOWN 28.9% to $230M

Q3 Operational Highlights

• Average net selling price of dried cannabis, excluding bulk sales, declined 1% to $4.75/g
• Kilograms sold increased by 9% to 16,578

Fiscal Q1 2024 Expectations

• expects cannabis net revenue for fiscal Q1 2024 to be largely similar to fiscal Q3 2023, with the geographical mix slightly weighted towards the international medical segment,
• expects to see a seasonally strong quarter in plant propagation, 
• expects Adjusted Gross Margins to be consistent with fiscal Q3 2023,
• expects to maintain its stated objective of a quarterly SG&A expense run rate below $30 million.

Fiscal 2024 Guidance

• hopes to have positive free cashflow by the end of calendar 2024,
• hopes to reduce operations cash use by a minimum of $5 million per quarter, by eliminating less efficient operations and focusing on supplying the globe from Aurora's highly efficient, high quality production facilities,
• hopes to remove a minimum of $5 million a quarter from several targeted efficiency and cost reduction initiatives in operations and SG&A,
• hopes to save over $1 million a quarter in capital expenditures in fiscal 2024.

Stock Performance

• Aurora's (ACB) stock price declined 21% during Q3 compared to a 16.7% decline in the other 4 constituents in the munKNEE Canadian Cannabis LPs Index.
• The stock remains weak, having declined a further 23% as of June 16th as compared to a 57% decline in the other 4 constituents in the Index.
• Given that its stock price has fallen below Nasdaq's minimum listing requirement of $1.00/share (currently trading at $054/share), it could be forced to institute a second reverse stock split in the months ahead.

More By This Author:

Largest American Cannabis MSO Stock Prices For Week Ending June 16th
Bubble In AI Stocks Began To Re-Inflate This Past Week
Boycott Of Bud Light (BUD) Over: Conservative "Cannabis" Stock Index Continues To Advance