Aurora Cannabis Posts Declining Q4 2021 Revenues Of $54.8 Million, Net Loss

Aurora Cannabis (TSX: ACB) this afternoon reported its fourth quarter financial results. The firm reported net revenues of $54.8 million for the quarter, along with a net loss of $134.0 million. For the full fiscal year, the firm posted losses of an astounding $695.1 million.

If investors were searching for a positive in the results, they may have a difficult time finding one. Revenues were down on both a quarter over quarter and year over year basis. Revenues were down 1% from $55.2 million in the third quarter, while revenues fell an incredible 20% on a year over year basis from $68.4 million to the $54.8 million recorded on a net basis – despite the cannabis market as a whole increasing year over year.

The only bright side here, is that medical cannabis sales rose 9% year over year, from $32.2 million to $35.0 million – yet were down quarter over quarter from the $36.4 million recorded last quarter. Consumer cannabis meanwhile was down 45% year over year to $19.5 million, but up 8% quarter over quarter.

Gross margins meanwhile came in at $18.1 million before fair value adjustments, following cost of sales of $37.6 million. Within its news release however, the company was quick to show an “adjusted gross margin” of $30.0 million, after depreciation and inventory impairments were backed out.

Profitability however is still far out of sight for the company, with the firm posting SG&A expenses of $46.9 million, and R&D expenses of $3.0 million during the quarter, along with depreciation and amortization of $23.0 million. This, combined with financing costs of $16.0 million and impairments of intangibles, goodwill and other line items of $98.8 million, lead the company to post a net loss of $134.0 million for the three month period. Adjusted EBITDA meanwhile came in at a negative $19.3 million.

For the full fiscal year, the company managed to post even worse figures. Net revenue came in at $245.3 million, down from the $268.7 million posted in FY2020, while gross margins came in negative at a loss of $12.0 million before adjustments. G&A of $119.4 million, and depreciation and amortization of $49.2 million provided little help here as well, pushing the loss from operations to $282.8 million.

Impairments of PP&E of $282.1 million, legal settlements of $46.2 million, and financing costs of $66.4 million further impacted results, leading to an overall net loss of $695.1 million for the full fiscal year. Adjusted EBITDA meanwhile amounted to a negative $114.1 million.

In terms of balance sheet however, the company currently has $421.5 million in cash, as well as inventory of $117.5 million, with current assets overall pegged at $665.9 million. Payables meanwhile tally up to $57.9 million, while all current liabilities total to $116.4 million.

Despite the losses, things are not looking up for the next quarter. The company during the current quarter closed its Polaris facility in Edmonton, Alberta, while consolidating its R&D operations. The firm reportedly had its impairment occur, at least partially, in the current quarter. Employment also appears to be on a downward slide, with employment declining from 1,761 persons to 1,643 persons as of September 27.

Aurora Cannabis last traded at $8.08 on the TSX.

Information for this briefing was found via Sedar and Aurora Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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