Full Press Release Details
Aurora Cannabis Files Full Year Results and Announces
Fiscal 2024 Fourth Quarter
Delivers Record Annual Adjusted
EBITDA1 of $12.8 Million
EDMONTON, AB, June 20, 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 fourth quarter and fiscal year 2024. As the fiscal year 2023 consisted
of three quarters, the year-over-year comparison quarter for Q4 2024 ending March 31, 2024 is Q3 2023 ending March 31, 2023.
"We are incredibly pleased to be reporting our
strongest fiscal year ever at Aurora. Total fiscal year 2024 net revenue increased 21% compared to the trailing four quarters, while adjusted
EBITDA was positive on an annualized basis for the first time in our history, reaching $12.8 million. We also strengthened our balance
sheet, ending with a strong net cash position of approximately $180 million as of March 31st, and fully repaid our convertible
debt," said Chief Executive Officer Miguel Martin.
"Aurora is the largest global medical cannabis
company in nationally legal markets and our leadership is best differentiated by serving the diverse needs of patients across the world.
In Q4 2024, global medical cannabis net revenue1 increased 20% year-over-year, supported by the recent acquisition of
MedReleaf Australia, where we saw significant growth, along with higher sales in Poland and the UK. We also achieved our highest quarterly
adjusted gross margin1 in medical cannabis of 66%, far ahead of our targeted range of 60%. These results are encouraging
as we continue to progress towards our next milestone of positive free cash flow by December 31st" 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 $57.3 million relating to Bevo Farms Ltd as detailed in the FY2024 Financial Statements. |
Fourth Quarter 2024 Highlights
(Unless otherwise stated, comparisons are made
between fiscal Q4 2024, Q3 2024, and Q3 2023 results and are in Canadian dollars)
Consolidated Revenue and Adjusted Gross Profit:
Total net revenue1 was $67.4 million, as compared to $64.0 million in the prior year period. The 5% increase from the
prior period was mainly due to 20% growth in our global medical cannabis business, partially offset by lower quarterly revenue in our
consumer cannabis business, and to a far lesser extent, our plant propagation business.
Consolidated adjusted gross margin before fair value
adjustments1 was 49% in Q4 2024 and in the prior year quarter. Adjusted gross profit before FV adjustments1 was $33.3 million in Q4 2024
vs $31.0 million in the prior year quarter, an increase of 8%.
Medical cannabis net revenue1 was $45.6 million, a 20% increase from the prior year quarter, delivering 68% of Aurora's
Q4 2024 consolidated net revenue[1] and 90% of adjusted gross profit before fair value adjustments1.
The increase in net revenue1 of $7.7 million was primarily
due to higher sales to Australia and Europe in the current period following the success of newly launched innovative cultivars in these
Adjusted gross margin before fair value adjustments1
on medical cannabis net revenue reached 66% for the three months ended March 31, 2024, compared to 60% in the prior year quarter and within
the Company's target range of 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 $10.2 million, compared to $14.5 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 adjustments[1]
on consumer cannabis net revenue[1] was 16%, decreasing from 25% compared to the prior year quarter. The decrease from the prior year
comparative quarter is largely due to product sales with lower margins relative to the comparative prior period.
Plant propagation net revenue1 was wholly comprised of the Bevo business, that contributed $10.4 million
of net revenue1 compared to $10.8 million in the prior year quarter. Historically, approximately 65-75% of plant
propagation revenue and up to 80% of EBITDA has been earned in the first half of the calendar year.
Adjusted gross margin before fair value adjustments1
on plant propagation revenue was 25% for Q4 2024 and 36% for the prior year quarter. This shift was due primarily to timing of certain
revenues being moved to Q1 2025, the period ending June 30, 2024, which can be expected given the typical seasonality of the plant propagation
Selling, General and Administrative ("SG&A"):
Adjusted SG&A1 was $31.6 million in Q4 2024, which excludes $8.0 million of restructuring and non-recurring
costs. Adjusted SG&A1 was slightly above the Company's previous target of $30 million due to the incremental SG&A following
the acquisition and continuing integration of MedReleaf Australia.
Adjusted R&D1, was $0.7 million in
Q4 2024, decreased $0.9 million compared to the prior year quarter.
Net loss from continuing operations for the three months ended March 31, 2024 was $20.8 million compared to net loss of $76.2
million for the prior year period. The decrease in net loss of $55.4 million compared to the comparative prior quarter is primarily due
to an increase in gross profit of $27.3 million, a decrease in operating expenses of $1.1 million, and a decrease in other expenses of
Adjusted EBITDA1 was $1.9 million for the three months ended March 31, 2024 compared to $2.0 million for the prior
Convertible Senior Notes Repayment
During the three months ended March 31, 2024, the Company repaid an aggregate of approximately $7.2 million (US$5.3 million),
representing the final repayment of the principal amount of its convertible senior notes and Aurora's cannabis business is now debt free2.
Fiscal Q1 2025 Expectations:
Achieving Positive Free Cashflow:
The Company views the target of positive free cashflow by end of calendar year 2024 as being achievable because of the following:
Key Quarterly Financial and Operating Results
| ($ thousands, except Operational Results) | Three months ended | ||||||
| March 31, 2024 | March 31, 2023 (6) | $ Change | % Change | December 31, 2023 (7) | $ Change | % Change | |
| Financial Results | |||||||
| Net revenue (1)(2a) | $67,411 | $63,951 | $3,460 | 5 % | $64,419 | $2,992 | 5 % |
| Medical cannabis net revenue (1)(2a) | $45,648 | $37,910 | $7,738 | 20 % | $45,082 | $566 | 1 % |
| Consumer cannabis net revenue (1)(2a) | $10,233 | $14,491 | ($4,258) | (29 %) | $11,623 | ($1,390) | (12 %) |
| Plant propagation revenue | $10,416 | $10,755 | ($339) | (3 %) | $7,285 | $3,131 | 43 % |
| Adjusted gross margin before FV adjustments on total net revenue (2b) | 49 % | 49 % | N/A | 0 % | 53 % | N/A | (4 %) |
| Adjusted gross margin before FV adjustments on core cannabis net revenue (2b) | 56 % | 52 % | N/A | 4 % | 56 % | N/A | 0 % |
| Adjusted gross margin before FV adjustments on medical cannabis net revenue (2b) | 66 % | 60 % | N/A | 6 % | 62 % | N/A | 4 % |
| Adjusted gross margin before FV adjustments on consumer cannabis net revenue (2b) | 16 % | 25 % | N/A | (9 %) | 29 % | N/A | (13 %) |
| Adjusted gross margin before FV adjustments on plant propagation net revenue (2b) | 25 % | 36 % | N/A | (11 %) | 28 % | N/A | (3 %) |
| Adjusted SG&A expense (2d)(5) | $31,598 | $27,470 | $4,128 | 15 % | $27,759 | $3,839 | 14 % |
| Adjusted EBITDA (2c)(5) | $1,891 | $1,983 | ($92) | (5 %) | $5,169 | ($3,278) | (63 %) |
| Balance Sheet | |||||||
| Working capital (2e) | $301,985 | $242,190 | $59,795 | 25 % | $308,743 | ($6,758) | (2) % |
| Cannabis inventory and biological assets (3) | $148,112 | $93,081 | $55,031 | 59 % | $112,645 | $35,467 | 31 % |
| Total assets | $838,673 | $926,322 | ($87,649) | (9 %) | $824,272 | $14,401 | 2 % |
| Operational Results - Cannabis | |||||||
| Average net selling price of dried cannabis excluding bulk sales (2f) | $5.37 | $4.74 | $0.63 | 13 % | $4.77 | $0.60 | 13 % |
| Kilograms sold (4) | 15,179 | 16,578 | (1,399) | (8 %) | 14,440 | 739 | 5 % |
| (1) | Includes the impact of actual and expected product returns and price adjustments (Q4 2024 - nil; Q3 2024 - $0.1 million; Q3 2023 - $0.3 million). | |
| (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) | "Working capital" is defined as Current Assets less Current Liabilities as reported on the Company's Consolidated Statements of Financial Position. | |
| f) | Net selling price of dried cannabis excluding bulk sales is comprised of revenue from dried cannabis excluding bulk sales (Q4 2024 - $41.7 million; Q3 2024 - $42.7 million; Q3 2023 - $37.1 million) less excise taxes on dried cannabis revenue excluding bulk sales (Q4 2024 - $4.4 million; Q3 2024 - $4.6 million; Q3 2023 -$4.5 million). | |
| (3) | Represents total biological assets and inventory, exclusive of merchandise, accessories, supplies, consumables and plant propagation biological assets. | |
| (4) | The kilograms sold, net of returns during the period. | |
| (5) | Prior period comparatives were adjusted to include the adjustments for markets under development, business transformation costs, and non-recurring charges related to non-core bulk cannabis wholesales to be comparable to the current period presentation. | |
| (6) | Certain previously reported amounts have been adjusted to exclude the results related to discontinued operations and adjusted for the accounts payable and accrued liabilities non-material prior period adjustment (refer to Note 2(i) in the consolidated financial statements). | |
| (7) | During the three months ended March 31, 2024, and subsequent to the filing of the Company's Q3 2024 condensed consolidated interim financial statements, the Company noted that inventory and property, plant and equipment was understated as at December 31, 2023. Certain balances in the condensed consolidated interim financial statements as at December 31, 2023 and in the condensed consolidated interim statement of loss and comprehensive loss for the three and nine months ended December 31, 2023 were adjusted as a result and the amounts shown above reflect such adjustment. Refer to discussion under "Historical Quarterly Results" section of this MD&A for further detail. |
Aurora will host a conference call today, Thursday,
June 20, 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
| DATE: | Thursday, June 20, 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 and adult recreational markets
Aurora's common shares trade on the NASDAQ and TSX
under the symbol "ACB".
Forward Looking Statements
Forward-looking statements made in this news release
include, but are not limited to, statements regarding pro forma measures including revenue, cash flow, Adjusted gross margin before fair
value adjustments, and expected SG&A run-rates; ongoing cost efficiencies; the Company's path and timing to achieve positive free
cash flow; the acquisition of MedReleaf Australia and associated benefits to the Company; the Company's leadership in the global medical
cannabis market; and statements under the heading "Fiscal Q1 2025 Expectations", including, but not limited to, those related
to expectations for increased revenue, further growth in international medical cannabis markets, Bevo's performance, continued positive
Adjusted EBITDA and improvements in operating cash flow. These forward-looking statements are only predictions. Forward looking information
or statements contained in this news release have been developed based on assumptions management considers to be reasonable. Material
factors or assumptions involved in developing forward-looking statements include, without limitation, publicly available information from
governmental sources as well as from market research and industry analysis and assumptions based on data and knowledge of this industry
which the Company believes to be reasonable. Forward-looking statements are subject to a variety of risks, uncertainties and other factors
that management believes to be relevant and reasonable in the circumstances that could cause actual events, results, level of activity,
performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements. These