Aurora Cannabis (TSX: ACB) this evening reported its second quarter financial results. The firm reported effectively flat quarter over quarter figures, while revenue on a year over year basis saw a decline of 10.5%.
Revenues for the quarter came in at $60.6 million, down from $67.7 million in the prior year. Revenues were comparative up marginally from $60.1 million in the first quarter of 2022. Most notably, the firms revenue mix continues to shift away from consumer cannabis and towards medical cannabis. Medical cannabis revenue was up 12% quarter over quarter to $45.7 million, while consumer cannabis was down 22% quarter over quarter to $14.8 million.
Flat revenues on a quarterly basis appears to be the best part of the earnings release for the company, with the firm posting a cost of sales of $71.7 million, representing a gross loss of $11.1 million before adjustments for the three month period, as compared to a gross profit of $26.7 million before adjustments in the first quarter. Of that cost of goods sold, $46.2 million was relative to inventory impairment losses.
Beyond the gross loss, the firm recognized $61.4 million in expenses, of which $28.7 million was related to G&A, while $14.3 million was attributed to sales and marketing. Loss from operations as a result totaled $19.7 million. Other income then pushed the quarter deeper into the red, with $19.7 million in further losses.
Overall, the company posted a net loss of $75.1 million for the second quarter of 2022, while adjusted EBITDA was a negative $9.0 million.
Looking to the balance sheet, the first cash and cash equivalents fell from $372.8 million to $332.4 million over the quarter, with total current assets falling from $653.0 million to $604.4 million. Total current liabilities meanwhile grew from $120.4 million to $122.9 million, lead by $52.8 million in accounts payable.
Looking forward, the firm has indicated that it intends to reach the high end of its cost cutting guidance by the end of the first half of fiscal 2023, with that range being $60 million to $80 million. Savings are said to see 60% come from asset consolidation, while the remaining 40% is to come from SG&A.
The company also indicated it has since added US$89.7 million to its balance sheet under an ongoing ATM financing, resulting in the issuance of 19.6 million shares.
Aurora Cannabis last traded at $5.85 on the TSX.
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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.