Whereas Canopy Growth Corp (TSX: WEED) (NYSE: CGC) posted revenue growth of 22.5% this morning on a quarter over quarter basis, Aurora Cannabis (TSX: ACB) (NYSE: ACB) continued to give up its lead, with Aurora revenues declining 5.96% on a quarterly basis. Aurora’s net revenues hit $67.8 million, while the net loss amounted to $109.5 million.
Net revenue fell on a quarterly basis from $72.1 million to $67.8 million, a function of both discontinued operations in Aurora Hemp Europe and Aurora Larssen Projects, as well as declining cannabis sales. Consumer cannabis net revenue fell 3% quarter over quarter to $34.3 million, while medical cannabis fell 4% over the same time period to $33.5 million.
Despite the decline in revenue, the figure overall represents an improvement to the prior guidance of $60.0 million to $64.0 million in cannabis net revenue.
Gross margins meanwhile came in at $24.5 million before fair value adjustments, with the company spending $43.3 million in costs of sales. Operating expenses meanwhile amounted to $68.9 million, with the bulk of that being attributable to general and administrative at $29.3 million, $4.1 million of which is said to be related to restructuring charges. Sales and marketing amounted to $15.0 million, while depreciation and amortization hit $14.1 million.
Other expenses meanwhile came in at $64.2 million, including a finance charge of $14.7 million, other losses of $10.7 million, and finally a legal settlement and contraction termination fee of $43.3 million, which culminated in a net loss of $109.5 million overall. The termination fee largely relates to the $40.2 million break fee in connection with the cancelled UFC partnership.
Looking to the balance sheet, cash and cash equivalents fell to $133.7 million over the course of the quarter, down from $162.2 million. Accounts receivable meanwhile climbed to $74.0 million from $54.1 million. Inventory also climbed, hitting $155.7 million, up from $121.8 million, while biological assets fell to $29.0 million from $35.4 million. Current assets overall rose from $420.7 million to $430.7 million.
Accounts payable fell to $89.3 million from $95.6 million during the quarter, while loans and borrowings also declined, hitting $104.3 million as compared to $120.5 million previously. Contingent consideration payable also fell significantly, falling to $0.3 million from $19.1 million. Total current liabilities overall fell to $229.3 million, down from $272.3 million.
The company also noted that during the quarter it continued to reduce production, with three of the five planned facility closures now completed. The company also changed its wording slightly within this mornings release, identifying that the company’s “goal is to achieve positive adjusted EBITDA in Q2 2021.” The cash balance as of November 6, 2020 is said to be roughly $250 million.
Aurora Cannabis last traded at $9.79 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.
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.