Canadian cannabis company Aurora reported a slight increase in 2021 Q1 revenue over the fourth quarter of last year, from $67.5 million to $67.8 million, but the company reported an adjusted EBITDA loss of $57.9 million in the quarter which, it said, “includes restructuring payments such as contract and employee termination costs of $47.4 million.”
As of November 6, Aurora’s cash balance was about $250 million, according to figures outlined in a press release.
“Excluding these impacts,” the company said, “Adjusted EBITDA loss, as defined under the term credit facility, is $10.5 million. Aurora was in full compliance with its September 30, 2020 term debt covenants.” The company said its goal remains “to achieve positive Adjusted EBITDA in Q2 2021.”
CEO Miguel Martin described the Q1 results as “transitional” but “highlighting successes across a number of diverse profit pools,” including leading Canada’s medical market by revenue, a 40 percent revenue growth increase in international medical cannabis business, and the company’s Reliva CBD products number one Nielsen ranking in the U.S.
“While we are not satisfied with our past performance in the growing Canadian consumer business, we have a sense of urgency in the execution of our tactical plan to grow profitable market share. Our efforts are directed at delivering the highest quality products, refocusing on our leading premium and ultra-premium brands, better allocating our sales and marketing spend, and executing key account partnerships at both the province and retail levels.” – Martin in a statement
The company reported a 3 percent decrease in consumer cannabis revenues (to $34.3 million) from last quarter but a $3.6 million increase in consumer cannabis extract net revenue driven by vapes, edibles, and concentrates, led by a $1.1 million increase in U.S. CBD sales. The company’s medical cannabis net revenues increased 4 percent (to $33.5 million), which was “primarily attributable to a strong performance in the international medical business, which grew 41 percent quarter over quarter,” the company said.
Selling, General and Administrative — including research and development — was $46.9 million in Q1 2021, down $19.6 million, the company said, attributing the decline to the firm’s Business Transformation Plan. The company also reported a $3.2 million decline in capital expenditures from $16.4 million in Q4 2020 to $13.2 million in Q1 2021.
“Aurora continues to execute its announced plan for reducing production and complexity through the closure of five cultivation facilities,” the company said, noting that three facilities are now fully closed.
Note: All figures in Canadian dollars.