Aurora Cannabis (NASDAQ: ACB) announced its financial results for the third quarter of fiscal year 2023, reporting quarterly revenue of $64.0 million, higher than the $61.7 million in the previous quarter and down from $50.4 million in the same quarter last year.
The cannabis firm still recorded a net loss of $87 million, compared to a net loss of $67 million in the previous quarter. The main reason for the net loss increasing by $20 million compared to the previous quarter was a $60 million rise in other expenses, primarily caused by fluctuations in the fair value of derivative investments.
For the three-month period, the adjusted EBITDA amounted to $0.3 million, compared to $1.4 million in the previous quarter and a loss of $10.0 million last year. The sequential decline, the firm said, can be primarily attributed to increased professional fees and consultant expenses “as the company balanced lower corporate headcounts with ongoing compliance and regulatory needs.”
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Following the release of the financial results, the company’s shares experienced as much as nearly 3% decline in pre-market trading.
In terms of revenue, the global medical cannabis segment and the Canadian consumer cannabis segment remained steady at $38 million and $14.5 million, respectively. The recently acquired Bevo contributed $10.7 million in revenue due to its traditionally strong seasonal period. Adjusted gross profit increased to $30.6 million, and adjusted gross margins remained healthy, with the medical business generating a stable gross margin of 60% and the consumer business achieving a 25% gross margin, up 500 basis points from the previous quarter.
At the end of the fiscal quarter, Aurora Cannabis had $232.9 million in cash, putting current assets at $479.9 million. Current liabilities ended at $242.3 million.
Looking ahead, Aurora expects cannabis net revenue for fiscal Q1 2024 to be similar to Q3 2023, with a slightly higher focus on the international medical segment. The company also anticipates maintaining consistent adjusted gross margins and a quarterly SG&A expense run rate below $30 million.
Aurora Cannabis last traded at $0.59 on the Nasdaq.
Information for this briefing was found via Sedar and the companies mentioned. 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.
