Aurora Cannabis (TSX: ACB) last night released its first quarter financial results, posting revenues of $60.1 million. The firm also posted a net loss of $11.9 million for the three month period ended September 30, 2021.
Revenues for the quarter were up 10% on a quarter over quarter basis from $54.8 million, however results were still down on a year over year basis by 11%, with the firm posting $67.6 million in net revenues in the year ago period. The quarterly growth came from the medical cannabis segment, which saw revenues of $41.0 million, which was a 17% improvement from last quarter, and a 23% improvement from a year ago. Recreational cannabis however was down 44% year over year.
Following cost of sales of $33.4 million, the firm reported a gross profit of $26.7 million before fair value adjustments. Despite being three years into full legalization in Canada, this placed the firm nowhere near profitability, with operating expenses amounting to $64.8 million for the three month period.
Despite pushing the narrative of their transformation on track, selling, general and administrative expenses totaled out at $45.8 million, and increase of 4% from the $44.1 million recorded a year ago. The firm continues to guide towards $60 to $80 million in aggregate cost cutting across SG&A, production, facility and logistic expenses. Operationally, the firm lost $39.4 million in the three month period.
Things did not get a whole lot better from here, however the company did recognize positive other income of $27.3 million. This was largely lead by derivative liability gains under the other gains line item to the tune of $43.1 million, which was partially offset by $15.3 million in finance and other costs.
Overall, the company posted a net loss of $11.9 million for the quarter, while adjusted EBITDA came in at negative $12.1 million.
Moving to the balance sheet, the company saw its cash position fall from $421.4 million to $372.8 million, while restricted cash grew from $19.4 million to $51.5 million. Inventory also grew, climbing from $117.5 million to $137.4 million. Overall, total current assets fell from $665.9 million to $653.0 million.
Accounts payable also fell, dropping from $57.9 million to $54.6 million. This was offset however by convertible debentures, which moved from $34.7 million to $37.3 million. Total current liabilities overall climbed from $116.4 million to $120.4 million.
Aurora Cannabis last traded at $9.30 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.