Aurora Cannabis (TSX: ACB) (NYSE: ACB) released its second quarter financials this morning, reporting net revenues during the quarter of $56.0 million, a decrease of 26% from the prior quarters revenues of $75.2 million, while also recording an adjusted EBITDA loss of $80.2 million, versus a loss of $39.7 million in the prior quarter. Revenues were down largely due to a significant fall in wholesale as well as international medical sales.
Despite revenues being down on a quarter over quarter basis, net revenues, including provisions are slightly better than what was forecast by Aurora at the end of last week when the firm announced the departure of CEO Terry Booth. At the time, the company had stated that it expected net revenues to come in at the $50 to $54 million range, which was slightly lower than the actual results posted by the firm.
While revenues were down, the company identified that medical sales were flat on a quarter over quarter basis, coming in at $27.3 million versus that of $30.4 million, with the decrease being solely attributed to international medical sales due to issues within the German market. While consumer, or recreational, cannabis saw in 11.0% increase on a quarter over quarter basis before provisions at $33.5 million, by the time provisions were implemented for returns and price adjustments, the company saw a quarter over quarter decline. Consumer cannabis as a result came in at $22.9 million versus $30.0 million in the prior period, a 10% decline.
Finally, wholesale revenue decreased dramatically by 77%, with revenues in that segment hitting $2.3 million versus $10.3 million in the prior period.
Despite the significant decrease in revenues, the coming saw a significant increase of 23% in terms of selling, general, and administrative expenses. Total expenses for the period came in at $99.8 million, an increase of 23% from the prior period figure of $81.1 million. The company has since taken measures to slice this figure in half on a go forward basis, which includes the recently announced significant company wide layoffs.
The company produced 30,691 kilograms of dried cannabis during the quarter, a decrease of 26% on a quarter over quarter basis from 41,436 kilograms in the prior period. Comparatively, 9,501 kilograms of cannabis equivalents were sold during the period, a 24% decrease from the prior periods figure of 12,463 kilograms. Aurora has since focused on high-value, high-potency varieties of cannabis, and as a result is now targeting annual production of 150,000 kilograms of cannabis.
Aurora is anticipating modest to no growth for the third fiscal quarter of 2019, with net revenues before provisions expected to come in at $65 million, as compared to the second quarters $66.6 million in net revenues before provisions.
Full financials have not yet been released as of the time of writing.
Aurora Cannabis last traded at $1.46 on the NYSE.
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.
