Aurora Cannabis (TSX: ACB) reported on late Tuesday its financial results for fiscal Q4 2022 ended June 30, 2022. The firm recorded quarterly revenue of $50.2 million, marginally down from Q3 2022’s $50.4 million and down from Q4 2021’s $54.8 million.
The firm ended with a net loss of $618.8 million, down from the net loss of $134.0 million last year. The quarterly loss is heavily driven by non-cash impairment charges of $505.1 million due to write down in goodwill, intangibles assets and property, plant and equipment.
The firm’s shares plummeted by 7.5% on the day following the financial results.
In terms of operations, the firm saw the average net selling price of dried cannabis come down to $5.10 from $5.41 last quarter and $5.11 last year. This was offset by an increase in volume, selling 13,130 kilograms for the quarter, up from last quarter’s 9,722 kilograms and last year’s 11,346 kilograms.
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CEO Miguel Martin defended the results, saying the firm, “[continues] to enhance the long-term value of [its] differentiated global cannabis business by quickly identifying highly profitable growth opportunities, deploying capital in a disciplined manner, and continuing to rationalize our cost structure.” The company further touts the 35.4% increase in its international medical cannabis net revenue segment.
Further down, adjusted gross margin came down to 47% from last quarter and last year’s 54%. Adjusted EBITDA losses narrowed to $12.9 million, down from last quarter’s $11.4 million loss but up from previous quarter’s $21.8 million loss.
“We continue to expect a positive adjusted EBITDA run rate by December 31, 2022 and remain on track with our previously announced cost saving targets of up to $170 million in annualized savings,” Martin added.
The cannabis firm ended the fiscal quarter with $488.8 million in cash from $480.6 million at the beginning of the period. The cash influx was a result of raised proceeds from its equity financing conducted in June amounting to approximately US$172.5 million, partially offset by repurchasing $155.3 million in convertible debt.
The company also noted that fiscal 2023 will only comprise three quarters as it shifts to a new fiscal year end on March 31, 2023.
Aurora Cannabis last traded at $1.67 on the TSX.
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