Aurora Cannabis falls after flat revenue and wider net loss
Aurora Cannabis (TSX:ACB) announced its financial results for the fourth quarter of fiscal 2022 ended June 30, 2022 on Tuesday evening. The company posted quarterly revenue of $50.2 million, down slightly from $50.4 million. in the third quarter of 2022 and $54.8 million in the fourth quarter of 2021.
The company ended with a net loss of $618.8 million, down from a net loss of $134.0 million last year. The quarterly loss was largely attributable to non-cash impairment charges of $505.1 million due to the impairment of goodwill, intangible assets and property, plant and equipment.
The company’s shares fell 7.5% the day after the financial results.
In terms of operations, the company saw the average net selling price of dried cannabis drop to $5.10 from $5.41 last quarter and $5.11 last year. This was offset by an increase in volume, with sales of 13,130 kilograms for the quarter, up from 9,722 kilograms in the prior quarter and 11,346 kilograms last year.
CEO Miguel Martin defended the results, saying the company, “[continues] to increase the long-term value of [its] a differentiated global cannabis business by quickly identifying highly profitable growth opportunities, deploying capital in a disciplined manner and continuing to streamline our cost structure. The company further touts the 35.4% increase in its international medical cannabis net revenue segment.
Lower, the adjusted gross margin fell to 47% compared to the last quarter and to 54% last year. Adjusted EBITDA losses narrowed to $12.9 million, down from last quarter’s loss of $11.4 million, but up from last quarter’s loss of $21.8 million. previous quarter.
“We continue to expect a positive Adjusted EBITDA run rate by December 31, 2022 and remain on track with our previously announced cost savings targets of up to $170 million. ‘annualized savings,’ Martin added.
The cannabis company ended the fiscal quarter with $488.8 million in cash, up from $480.6 million at the start of the period. The cash inflow is the result of proceeds raised from its equity financing completed in June amounting to approximately US$172.5 million, partially offset by the redemption of US$155.3 million of convertible debt.
The company also noted that fiscal 2023 will consist of only three quarters, as it transitions to a new fiscal year-end on March 31, 2023.
Aurora Cannabis last traded at $1.67 on the TSX.
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