Full Press Release Details
Aurora Cannabis Announces
Fiscal 2025 Third Quarter Results
Reports Total Net Revenue1
of $88.2 Million, up 37% YoY, Including Record Net Revenue1 of $68.1 Million in Global Medical Cannabis, up 51% YoY
Generates Record Net Income
of $31.2 Million, up 282% YoY, and Record Adjusted EBITDA1 of $23.1 Million, up 316% YoY
Achieves Target of Positive
Free Cash Flow1 in Q3, Generating $27.4 Million of Free Cash Flow1
Maintains Strong Balance
Sheet with $180 Million of Cash and Debt-Free Cannabis Business2
EDMONTON, AB, Feb. 5, 2025 /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 third quarter fiscal 2025.
"This quarter was record-breaking for Aurora,
driven by all-time highs in global medical net revenue1, net income, adjusted EBITDA1, and free cash flow1.
These achievements, along with our strong cash position and debt-free cannabis business, underscore Aurora's leadership in the global
cannabis industry as we continue to set ourselves apart from our peers," said Miguel Martin, Executive Chairman and Chief Executive
Officer for Aurora Cannabis.
"Our strong top-line performance and record adjusted
EBITDA1 were mostly fueled by contributions from our global medical cannabis business. International net revenue1
grew 112% and accounted for 60% of global medical cannabis net revenue1. Additionally, our plant propagation segment increased
22%, driven by organic expansion and an enhanced product portfolio, further strengthening our operating model. Our stated goals of continued
strategic growth, operational excellence, and long-term sustained profitability are unwavering and we are deeply appreciative of our team's
efforts in helping us achieve these milestones," concluded Mr. Martin.
| _________________________________________________________________________________________ |
| 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 $57.9 million relating to Bevo Farms Ltd as detailed in the FY2025 Q3 Financial Statements. |
Third Quarter 2025 Highlights
(Unless otherwise stated, comparisons are made
between fiscal Q3 2025, Q2 2025, and Q3 2024 results and are in Canadian dollars)
Consolidated Revenue and Adjusted Gross Profit:
Total net revenue1 was $88.2 million, as compared to $64.4 million in the prior year period. The 37% increase from
the prior period was mainly due to 51% growth in our global medical cannabis business and 22% growth in our plant propagation business,
slightly offset by lower quarterly revenue in our consumer cannabis business.
Consolidated adjusted gross margin before fair value
adjustments1 was 65% in Q3 2025 and 53% in the prior year quarter. Adjusted gross profit before FV adjustments1
was $56.0 million in Q3 2025 vs $33.6 million in the prior year quarter, an increase of 67%.
Medical cannabis net revenue1 was $68.1 million, a 51% increase from the prior year quarter, delivering 77% of Aurora's
Q3 2025 consolidated net revenue1 and 90% of adjusted gross profit before fair value adjustments1.
The increase in net revenue1 of $23.1 million
was primarily due to higher sales to Australia, Germany, Poland, and the UK, as well as increased revenue in Canada to insurance covered
and self-paying patients.
Adjusted gross margin before fair value adjustments1
on medical cannabis net revenue reached 74% for the three months ended December 31, 2024, compared to 63% in the prior year quarter. The
adjusted gross margins before fair value adjustments improved through sustainable cost reductions, higher selling prices, and improved
efficiency in production operations, including sourcing for Europe from Canada.
Aurora's consumer cannabis net revenue1 was $9.9 million, a 15% decrease compared to $11.6 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 global medical
cannabis business rather than the consumer business, which offers lower margins.
Adjusted gross margin before fair value adjustments1
on consumer cannabis net revenue1 was 26%, decreasing from 29% compared to the prior year quarter. The decrease from the prior
year comparative quarter is primarily due to product sales with lower margins relative to the same period in the prior year.
Plant propagation net revenue1 was wholly comprised of the Bevo business, and contributed $8.9 million of net
revenue1, a 22% increase compared to $7.3 million in the prior year quarter. The increase was a result of organic growth and
expanded product offerings, both arising from increased capacity.
Adjusted gross margin before fair value adjustments1
on plant propagation revenue was 40% for Q3 2025 and 28% for the prior year quarter. The fluctuations in the plant propagation adjusted
gross margin before fair value adjustments is due is due to higher margin ornamental plant sales in the third quarters. Additionally, Bevo's
greenhouses are producing at higher capacity.
Selling, General and Administrative ("SG&A"):
Adjusted SG&A1 was $31.3 million in Q3 2025, which excludes $4.9 million of business transformation costs.
The increase compared to the three months ended December 31, 2023 relates to higher freight and logistics costs, notably from sales to
Europe with the increase in sourcing from Canada and incremental costs following the acquisition of MedReleaf Australia.
Net income from continuing operations for the three months ended December 31, 2024 was $31.2 million compared to net loss of $17.1
million for the prior year period. The increase in net income of $48.3 million compared to the three months ended December 31, 2023 primarily
relates to the improvement in gross profit of $54.0 million, partially offset with a decrease in other income of $5.3 million. The increase
in gross profit includes an increase in unrealized gain on changes in fair value of biological assets of $42.4 million, partially offset
by an increase in changes in fair value of inventory and biological assets sold of $15.2 million.
Adjusted EBITDA1 increased 316% to $23.1 million for the three months ended December 31, 2024 compared to $5.5 million
for the prior year quarter.
Fiscal Q4 2025 Expectations:
Continued revenue growth across
our cannabis business, supported by year over year growth in international medical cannabis.
Seasonally higher revenues for
plant propagation, in line with historical seasonal trends.
Margins to hold strong and positive
adjusted EBITDA to continue.
Improved operating cash use will
be supported by continued spend discipline on capex and expected revenue growth.
Free cash flow is projected to
be modestly positive due to continued revenue growth and improved operating cash use.
Concurrently with filing of the Q3 Financials, the Company has filed a preliminary base shelf prospectus which, together with
a corresponding registration statement to be filed with the United States Securities and Exchange Commission, when made final or effective,
will replace the Company's existing base shelf prospectus that is due to expire on May 27, 2025 and will qualify the issuance of U.S.$250
million of common shares, warrants, options, subscription receipts, debt securities and/or units of the Company during the 25-month period
that it remains effective.
Key Quarterly Financial Results
| ($ thousands, except Operational Results) | Three months ended | ||||||
| December 31, 2024 | September 30, 2024 | $ Change | % Change | December 31, 2023 (3) | $ Change | % Change | |
| Financial Results | |||||||
| Net revenue (1a) | $88,198 | $81,122 | $7,076 | 9 % | $64,375 | $23,823 | 37 % |
| Medical cannabis net revenue (1a) | $68,149 | $61,316 | $6,833 | 11 % | $45,038 | $23,111 | 51 % |
| Consumer cannabis net revenue (1a) | $9,912 | $10,422 | ($510) | (5 %) | $11,623 | ($1,711) | (15 %) |
| Plant propagation revenue | $8,897 | $8,634 | $263 | 3 % | $7,285 | $1,612 | 22 % |
| Adjusted gross margin before FV adjustments on total net revenue (1b) | 65 % | 54 % | N/A | 11 % | 53 % | N/A | 12 % |
| Adjusted gross margin before FV adjustments on cannabis net revenue (1b) | 67 % | 57 % | N/A | 10% 11% | 56 % | N/A | 11 % |
| Adjusted gross margin before FV adjustments on medical cannabis net revenue (1b) | 74 % | 68 % | N/A | 6 % | 63 % | N/A | 11 % |
| Adjusted gross margin before FV adjustments on consumer cannabis net revenue (1b) | 26 % | 14 % | N/A | 12 % | 29 % | N/A | (3 %) |
| Adjusted gross margin before FV adjustments on plant propagation net revenue (1b) | 40 % | 19 % | N/A | 21 % | 28 % | N/A | 12 % |
| Adjusted SG&A expense (1d) | $31,262 | $31,722 | ($460) | (1 %) | $27,759 | $3,503 | 13 % |
| Adjusted EBITDA (1c) | $23,101 | $10,122 | $12,979 | 128 % | $5,549 | $17,552 | 316 % |
| Free cash flow (1e) | $27,364 | ($26,433) | $53,797 | 204 % | ($4,702) | $32,066 | 682 % |
| Balance Sheet | |||||||
| Working capital (1f) | $344,404 | $308,580 | $35,824 | 12 % | $308,743 | $35,661 | 12 % |
| Cannabis inventory and biological assets (2) | $212,075 | $177,999 | $34,076 | 19 % | $112,645 | $99,430 | 88 % |
| Total assets | $866,521 | $808,774 | $57,747 | 7 % | $824,272 | $42,249 | 5 % |
| (1) | 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. | |
| (2) | Represents total biological assets and inventory, exclusive of merchandise, accessories, supplies, consumables and plant propagation biological assets. | |
| (3) | Certain previously reported amounts have been adjusted to exclude the results of discontinued operations and adjusted for non-material prior period adjustments (refer to Note 2 in the condensed consolidated interim financial statements). |
Aurora will host a conference call today, Wednesday,
February 5, 2025, 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
| DATE: | Wednesday, February 5, 2025 |
| TIME: | 8:00 a.m. Eastern Time | 6:00 a.m. Mountain Time |
| WEBCAST: | Click Here |
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 and adult recreational markets
Aurora's common shares trade on the NASDAQ and TSX