E Cannabis Central: Aurora Stock Jumps 15% On Favorable Q4 Financial Report

Aurora Cannabis Inc. (ACB) announced its Q4 financial results today for the period ended June 30, 2020. The highlights are as follows:

Q4 Financial Highlights  (Unless otherwise noted, all results are presented in Canadian dollars (go here to convert into USD) and compared to the previous quarter.)

  • Total Net Revenue: -5% to $72.1M
    • Cannabis Net Revenue: -3% to $67.5M
      • Adj. Gross Margin: increased to 50% from 43%
    • Consumer Cannabis Net Revenue: -9% to $35.3M
      • Adj. Gross Margin: increased to 35% from 29%
    • Medical Cannabis Net Revenue: +4% to $32.2M
      • Adj. Gross Margin: increased to 67% from 60%
  • SG&A (incl. R&D): -18% to $60.1M
  • Adj. EBITDA: loss reduced by 31.3% to $(34.6M)

Operational Highlights

  • Production Volume: +23%
    • Production Cost/g of dried cannabis: -27% to $0.89/g
  • Kilograms Sold: +32%
    • Ave. net selling price of dried cannabis: -22% to $3.60/g
  • Capital Expenditures: -77.7% to $16.4M

Guidance For 2021

  • realize a 5-11% decline in Net Revenue in Q1 2021
  • increase Adj. Gross Margin on cannabis net revenue to between 46% and 50% from current 35%
  • achieve positive Adj. EBITDA for Q2
  • reduce Capital Expenditures to $10M per quarter on average
  • realize a decline in Debt and Interest Payments

Management Commentary

Stated Miguel Martin, recently appointed Chief Executive Officer of Aurora:

"...Our Q4 demonstrated:

  • progress in rationalization of SG&A and cash burn along with continued leadership in both Canadian and international medical.
  • However, Aurora has slipped from its top position in Canadian consumer, a market that continues to support material growth and opportunity.

My focus is therefore to re-position the Canadian consumer business immediately.

  • We look to expand beyond the value flower segment,
  • leverage our capabilities in science and product innovation
  • and put our effort on a finite number of emerging growth formats.
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Craig Newman 1 month ago Member's comment

Nice headline, but you may want to double check that.