Full Press Release Details
Aurora Cannabis Announces Fiscal 2025 First Quarter
Results and Delivers Positive Free Cash Flow
Delivers Positive Free Cash Flow1 of $6.5 Million
Increases Total Quarterly Net Revenue1 by 12%
YoY to $83.4 Million, Record Net Revenue1 of $47.2 Million in Global Medical Cannabis
Generates Adjusted EBITDA1 of $4.9 Million, a
Ends the Fiscal Quarter with a Debt-Free Cannabis Business2
and a Cash Position of ~$182 Million
EDMONTON, AB, Aug. 7, 2024 /CNW/ - Aurora Cannabis
Inc. (the "Company" or "Aurora") (NASDAQ: ACB) (TSX: ACB), a leading Canada-based global medical cannabis
company, today announced its financial and operational results for the first quarter fiscal 2025.
"This was a milestone quarter for Aurora, as
we delivered strong net revenue1 growth, a substantial increase in adjusted EBITDA1, and positive free cash flow1.
Our impressive performance was driven by record net revenue1 in the rapidly growing global medical cannabis segment, and we
look forward to building on our achievements in key markets such as Germany, Australia, and the UK throughout fiscal 2025 and beyond.
The quarter was further supported by a record contribution from our Bevo plant propagation business, underscoring the strength of our
diversified business model," said Chief Executive Officer Miguel Martin.
"The progress we made during the quarter sets
a strong foundation for the rest of the fiscal year, and with our continued commitment to operational excellence and strategic growth,
we are well-positioned to sustain this positive momentum. Our growth in global medical, the highest margin cannabis segment, alongside
our strong balance sheet and ongoing fiscal discipline, are pivotal as we build on our achievement with respect to positive free cash
flow," Mr. Martin concluded.
| 1 This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See "Non-GAAP Measures" below for reconciliations of non-GAAP financial measures to GAAP financial measures. |
| 2 Aurora's only remaining debt is non-recourse debt of $52.4 million relating to Bevo Farms Ltd as detailed in the FY2025 Q1 Financial Statements |
First Quarter 2025 Highlights
(Unless otherwise stated, comparisons are made
between fiscal Q1 2025, Q4 2024, and Q1 2024 results and are in Canadian dollars)
Consolidated Revenue and Adjusted Gross Profit:
Total net revenue1 was $83.4 million, as compared to $74.7 million in the prior year period. The 12% increase from
the prior period was mainly due to 13% growth in our global medical cannabis business and 16% growth in our plant propagation business,
slightly offset by lower quarterly revenue in our consumer cannabis.
Consolidated adjusted gross margin before fair value
adjustments1 was 43% in Q1 2025 and 44% in the prior year quarter. Adjusted gross profit before FV adjustments1 was $36.0 million
in Q1 2025 vs $32.6 million in the prior year quarter, an increase of 10%.
Medical cannabis net revenue1 was $47.2 million, a 13% increase from the prior year quarter, delivering 57% of Aurora's
Q1 2025 consolidated net revenue1 and 91% of adjusted gross profit before fair value adjustments1.
The increase in net revenue1 of $5.6 million was primarily
due to higher sales to Australia and a steady increase in sales in Canada to insurance covered patients and larger basket sizes.
Adjusted gross margin before fair value adjustments1
on medical cannabis net revenue reached 69% for the three months ended June 30, 2024, compared to 61% in the prior year quarter. Our target
range is 60% and above. The adjusted gross margins before fair value adjustments improved through sustainable cost reductions, higher
selling prices in Australia, and improved efficiency in production operations, including sourcing for Europe from Canada due to the closure
of the Aurora Nordic production facility.
Aurora's consumer cannabis net revenue1 was $11.5 million, a 10% decrease compared to $12.8 million in the prior year
quarter. The decrease was due to our decision to prioritize the supply of our GMP manufactured products to our high margin international
business rather than the consumer business, which offers lower margins.
Adjusted gross margin before fair value adjustments1
on consumer cannabis net revenue1 was 24%, decreasing from 26% compared to the prior year quarter. The decrease from the prior
year comparative quarter is largely due to higher margin product sales.
Plant propagation net revenue1 was wholly comprised of the Bevo business, and contributed $23.1 million of net revenue1,
a 16% increase compared to $19.9 million in the prior year quarter. The increase was a result of organic growth and increased product
offerings. Historically, approximately 65-75% of plant propagation revenue and up to 80% of EBITDA has been earned in the first half of
Adjusted gross margin before fair value adjustments1
on plant propagation revenue was 18% for Q1 2025 and 22% for the prior year quarter. The fluctuations in the plant propagation adjusted
gross margin before fair value adjustments is due to changes in product mix and a prolonged Spring season in the current quarter.
Selling, General and Administrative ("SG&A"):
Adjusted SG&A1 was $31.4 million in Q1 2025, which excludes $4.9 million of business transformation costs. Adjusted
SG&A1 is likely to remain above our previous target of $30 million due to the incremental SG&A following the acquisition
of MedReleaf Australia.
Adjusted R&D1, was $1.0 million in
Q1 2025, which is relatively consistent as compared to the prior year quarter at $1.1 million. Our investment in R&D and product innovation
is partly opportunistic, as such these costs will vary quarter over quarter and year over year.
Net income from continuing operations for the three months ended June 30, 2024 was $4.8 million compared to net loss of $20.2
million for the prior year period.
Adjusted EBITDA1 increased 87%to $4.9 million for the three months ended June 30, 2024 compared to $2.6 million for
the prior year quarter.
Fiscal Q2 2025 Expectations:
We expect to see continued strong net revenue and adjusted gross margins across our cannabis business, supported by net revenue1
growth in Europe and Australia.
For plant propagation, we expect to see seasonally
reduced revenues and gross profit in Q2 2025 that will be in line with historical performance as 25% - 35% of revenues are normally
earned in the second half of a calendar year.
Positive adjusted EBITDA is expected to continue while
free cash flow is anticipated to be negatively impacted by several significant annual and one-time cash payments that typically occur
Key Quarterly Financial Results
| Three months ended | |||||||
| ($ thousands, except Operational Results) | June 30, 2024 | March 31, 2024 (4) | $ Change | % Change | June 30, 2023 (4) | $ Change | % Change |
| Financial Results | |||||||
| Net revenue (1)(2a) | $83,435 | $67,411 | $16,024 | 24 % | $74,732 | $8,703 | 12 % |
| Medical cannabis net revenue (1)(2a) | $47,201 | $45,648 | $1,553 | 3 % | $41,615 | $5,586 | 13 % |
| Consumer cannabis net revenue (1)(2a) | $11,533 | $10,233 | $1,300 | 13 % | $12,842 | ($1,309) | (10 %) |
| Plant propagation revenue | $23,081 | $10,416 | $12,665 | 122 % | $19,904 | $3,177 | 16 % |
| Adjusted gross margin before FV adjustments on total net | |||||||
| revenue (2b) | 43 % | 50 % | N/A | (7 %) | 44 % | N/A | (1 %) |
| Adjusted gross margin before FV adjustments on cannabis | |||||||
| net revenue (2b) | 53 % | 54 % | N/A | (1 %) | 52 % | N/A | 1 % |
| Adjusted gross margin before FV adjustments on medical | |||||||
| cannabis net revenue (2b) | 69 % | 66 % | N/A | 3 % | 61 % | N/A | 8 % |
| Adjusted gross margin before FV adjustments on | |||||||
| consumer cannabis net revenue (2b) | 24 % | 16 % | N/A | 8 % | 26 % | N/A | (2 %) |
| Adjusted gross margin before FV adjustments on plant propagation net revenue (2b) | 18 % | 25 % | N/A | (7 %) | 22 % | N/A | (4 %) |
| Adjusted SG&A expense (2d) | $31,396 | $31,351 | $45 | 0 % | $29,033 | $2,363 | 8 % |
| Adjusted EBITDA (2c) | $4,887 | $2,319 | $2,568 | 111 % | $2,619 | $2,268 | 87 % |
| Free cash flow (2e) | $6,490 | ($21,866) | $28,356 | (130 %) | ($11,686) | $18,176 | (156 %) |
| Balance Sheet | |||||||
| Working capital (2f) | $322,563 | $301,985 | $20,578 | 7 % | $192,201 | $130,362 | 68 % |
| Cannabis inventory and biological assets (3) | $173,197 | $148,112 | ($62,672) | (42 %) | $100,846 | ($15,406) | (15) % |
| Total assets | $838,689 | $838,673 | $16 | 0 % | $832,188 | $6,501 | 1 % |
| (1) | Includes the impact of actual and expected product returns and price adjustments (Q1 2025 - nil; Q1 2024 - $0.6 million Q4 2024 - nil). | |
| (2) | These terms are defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. Refer to the following sections for reconciliation of Non-GAAP Measures to the IFRS equivalent measure: | |
| a. | Refer to the "Revenue" and "Cost of Sales and Gross Margin" section for a reconciliation of cannabis net revenue to the IFRS equivalent. | |
| b. | Refer to the "Adjusted Gross Margin" section for reconciliation to the IFRS equivalent. | |
| c. | Refer to the "Adjusted EBITDA" section for reconciliation to the IFRS equivalent. | |
| d. | Refer to the "Operating Expenses" section for reconciliation to the IFRS equivalent. | |
| e. | Refer to the "Liquidity and Capital Resources" section for a reconciliation to the IFRS equivalent. | |
| f. | "Working capital" is defined as Current Assets less Current Liabilities as reported on the Company's Consolidated Statements of Financial Position. | |
| (3) | Represents total biological assets and inventory, exclusive of merchandise, accessories, supplies, consumables and plant propagation biological assets. | |
| (4) | Certain previously reported amounts have been adjusted to exclude the results related to discontinued operations. |
Aurora will host a conference
call today, Wednesday, August 7, 2024, to discuss these results. Miguel Martin, Chief Executive Officer, and Simona King, Chief
Financial Officer, will host the call starting at 8:00 a.m. Eastern time | 6:00 a.m. Mountain Time. A question and answer session
will follow management's presentation.
| DATE: | Wednesday, August 7, 2024 |
| TIME: | 8:00 a.m. Eastern Time | 6:00 a.m. Mountain Time |
| WEBCAST: | Click Here |
This weblink has also been posted
to the Company's "Investor Info" link at https://www.auroramj.com/investors/ under "Events".
About Aurora Cannabis
Aurora is opening the world to
cannabis, serving both the medical and consumer markets across Canada, Europe, Australia and South America. Headquartered in Edmonton,
Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company's adult-use brand portfolio
includes Drift, San Rafael '71, Daily Special, Tasty's, Being and Greybeard. Medical cannabis brands include MedReleaf, CanniMed, Aurora
and Whistler Medical Marijuana Co., as well as international brands, Pedanios, Bidiol, IndiMed and CraftPlant. Aurora also has a controlling
interest in Bevo Farms Ltd., North America's leading supplier of propagated agricultural plants. Driven by science and innovation, and
with a focus on high-quality cannabis products, Aurora's brands continue to break through as industry leaders in the medical, wellness
Aurora's common shares trade
on the NASDAQ and TSX under the symbol "ACB".
Forward Looking Statements
This news release includes statements
containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements").
Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project",
"intend", "believe", "anticipate", "estimate", "may", "will", "potential",
"proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur.
Forward-looking statements made in this news release include, but are not limited to, statements regarding the Company's Q1 FY2025