E Aurora Q2 Financial Results Show 71% Improvement In EBITDA

Aurora Cannabis Inc. (ACB), a constituent in the munKNEE Pure-Play Pot Stock Index, announced its Q2, 2021 financial results today for the period ended December 30, 2020. The highlights are as follows:

Q2 Financial Highlights (All results are presented in Canadian dollars - go here to convert into USD - and compared to the previous quarter.)

  • Total Net Revenue: almost unchanged at $67.7M
    • Consumer Cannabis Net Revenue: -17% to $28.6M
      • Adj. Gross Margin: decreased to 27% from 38%
    • Medical Cannabis Net Revenue: +16% to $38.9M
      • Adj. Gross Margin: decreased to 56% from 59%
  • SG&A: -5% to $42M
  • R&D: -6% to $2.4M
  • Adj. EBITDA: loss decreased 71% to $(16.8M)

Operational Highlights

  • Average Net Selling Price/g of Dried Cannabis: increased 8% to $4.00/g

Management Commentary

Miguel Martin, Chief Executive Officer, said:

  • "...Adjusted EBITDA for the quarter, while vastly improved year over year, was impacted by several decisions that we believe will clear a path for our premium product focus and more variable cost model. We are confident that this will give Aurora maximum flexibility and position the organization to drive significant cashflow in the coming quarters.
  • To further support this strategy, we have also focused on improving our cash burn, margins and overall financial flexibility.  To that point,
    • our year over year cash use has decreased by 74% to $70.5 million,
    • our normalized margins remain solid particularly in medical, and
    • our recently amended credit facility gives Aurora much-improved optionality as opportunities arise.
  • Combined with $565 million in cash on our balance sheet today, Aurora will continue to be a long-term player in the global cannabinoid market and increasingly positioned to deliver for shareholders over the long run."

Stock Performance

While Aurora's stock price went DOWN 68% in 2020, it is showing considerable improvement of late going UP a dramatic 74% since the beginning of 2021 and up 30% so far in February. Please note that its major decline today was not specific to Aurora's Q2 2021 financial report but to a general sector decline of 33%.

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