Aurora Cannabis (TSX: ACB) last night released its first quarter financial results, posting revenues of $60.1 million. The firm also posted a net loss of $11.9 million for the three month period ended September 30, 2021.
Revenues for the quarter were up 10% on a quarter over quarter basis from $54.8 million, however results were still down on a year over year basis by 11%, with the firm posting $67.6 million in net revenues in the year ago period. The quarterly growth came from the medical cannabis segment, which saw revenues of $41.0 million, which was a 17% improvement from last quarter, and a 23% improvement from a year ago. Recreational cannabis however was down 44% year over year.
Following cost of sales of $33.4 million, the firm reported a gross profit of $26.7 million before fair value adjustments. Despite being three years into full legalization in Canada, this placed the firm nowhere near profitability, with operating expenses amounting to $64.8 million for the three month period.
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Despite pushing the narrative of their transformation on track, selling, general and administrative expenses totaled out at $45.8 million, and increase of 4% from the $44.1 million recorded a year ago. The firm continues to guide towards $60 to $80 million in aggregate cost cutting across SG&A, production, facility and logistic expenses. Operationally, the firm lost $39.4 million in the three month period.
Things did not get a whole lot better from here, however the company did recognize positive other income of $27.3 million. This was largely lead by derivative liability gains under the other gains line item to the tune of $43.1 million, which was partially offset by $15.3 million in finance and other costs.
Overall, the company posted a net loss of $11.9 million for the quarter, while adjusted EBITDA came in at negative $12.1 million.
Moving to the balance sheet, the company saw its cash position fall from $421.4 million to $372.8 million, while restricted cash grew from $19.4 million to $51.5 million. Inventory also grew, climbing from $117.5 million to $137.4 million. Overall, total current assets fell from $665.9 million to $653.0 million.
Accounts payable also fell, dropping from $57.9 million to $54.6 million. This was offset however by convertible debentures, which moved from $34.7 million to $37.3 million. Total current liabilities overall climbed from $116.4 million to $120.4 million.
Aurora Cannabis last traded at $9.30 on the TSX.
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.
