Aurora Cannabis Reports Second Quarter Loss of $75.1 Million as Revenue Drops 10%
Aurora Cannabis ACB ACB announced its financial and operating results for the second quarter of fiscal 2022 ended December 31, 2021.
“During the second quarter, we improved our adjusted EBITDA by $2.5 million compared to the first quarter, bringing us closer to our profitability target. We remain focused on further cost reductions, and we are pleased to ‘to announce today that we plan to hit the high end of the $60-80 million range,’ said Aurora CEO Miguel Martin. “Our balance sheet remains one of the strongest in the industry, with approximately $445 million in cash as of yesterday. This gives us significant working capital to support organic growth and positions us to pursue strategic M&A opportunities. »
Martin trumpeted international medical marijuana markets as key to Aurora’s future growth, as it posted a loss of $75.1 million in its most recent quarter.
“Total Cannabis net sales in the second quarter were flat sequentially, driven by our industry-leading, high-margin global medical cannabis business. New international markets are rapidly opening up, and with the unique ability to navigate complex regulatory environments, we see a significant revenue opportunity of which we are at the forefront,” said Martin. “As the Canadian adult market continues to face challenges, we are focused on introducing a new line of products slated to launch this spring.”
Here is the breakdown
- Global cannabis net income of $60.6 million
- Adjusted EBITDA improved by 22% to reach a loss of $9.0 million compared to Q1 2022
- The company reaffirms its objective of Adjusted EBITDA profitability in H1/2023
- Transformation plan ahead of schedule; the company now expects to reach the upper end of $60 at $80 million rincrease in total cost savings by H1/2023; ~$60 million annualized savings to date
- The company remains the leading Canadian record company in the global medical cannabis space; international cannabis revenues increased by 24% compared to the first quarter of 2022
Although the Edmonton-based cannabis company is launching in Israel, Australia and Europe, it believes the United States and many other regions have potential for revenue generation, if the the wave of pot legalization continues around the world.
“We expect a domino effect as acceptance grows,” Martin said in a Thursday call with analysts.
“Where there is money to be made in a federally regulated structure, Aurora will be there and we will win.”