Aurora Cannabis Announces Fiscal 2024 Third Quarter Results; Generates Record Adjusted EBITDA of $4.3 Million



                                                                                                       NASDAQ | TSX: ACB

Re-Affirms Commitment to Achieving Positive Free Cash Flow1 This Calendar Year, Delivers Fifth Consecutive Quarter of Positive Adjusted EBITDA1
Aurora Becomes the Largest Global Medical Cannabis Company in Nationally Legal Markets Following the Acquisition of MedReleaf Australia
Strong YoY Growth of 41% in High Margin International Net Cannabis Revenue1
Cash position of over $200 Million as of Quarter Close, Remaining Convertible Debt of $7.3 Million to be Fully Repaid in February

EDMONTON, AB, Feb. 8, 2024 /CNW/ – Aurora Cannabis Inc. (the “Company” or “Aurora”) (NASDAQ:ACB) (TSX:ACB), the Canada-based leading global medical cannabis company, today announced its financial and operational results for the third quarter of fiscal year 2024. As the fiscal year 2023 consisted of three quarters, the year-over-year comparison quarter for Q3 2024 ending December 31, 2023, is Q2 2023 ending December 31, 2022.

In a separate press release issued today before the markets opened, Aurora also announced that a wholly owned subsidiary of the Company has acquired the remaining approximately 90% equity interest of Indica Industries Pty Ltd (“MedReleaf Australia”). MedReleaf Australia has been a strategic partner of Aurora since 2017 and holds the #2 position in the rapidly growing ~AUD$400 million2 Australian medical cannabis market.

“Fiscal 2024 is on track to be our strongest to date, driven by the continued strength of our differentiated business model and our focus on profitable global medical cannabis markets. Our international medical net revenue1 grew 41% year-over-year in Q3, demonstrating Aurora’s ability to meet diverse patient needs in markets across the world.” stated Miguel Martin, Chief Executive Officer of Aurora.

Mr. Martin added. “The acquisition of MedReleaf Australia will make Aurora the largest global medical cannabis company in nationally legal markets and will allow us to leverage our success in providing pharmaceutical grade cannabis across 15 countries. MedReleaf Australia is expected to be immediately accretive to Adjusted EBITDA1, while accelerating our path to generate positive free cash flow1 this calendar year.”

Mr. Martin continued, “Q3 marks our fifth consecutive quarter of positive adjusted EBITDA1, driven by consistent performance in our Canadian business and substantial revenue growth internationally. We are now on the cusp of achieving positive adjusted EBITDA1 on an annualized basis for the first time in fiscal 2024, a critical milestone for us, supported by our previously announced goal of realizing $40 million in annualized cost efficiencies by the end of the fiscal year.”


1 This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See “Non-GAAP Measures” below for reconciliations of non-GAAP financial measures to GAAP financial measures.

2 The Pennington Institute, “Cannabis in Australia 2023.”  (Estimated revenue of AUD$210m for January to June 2023 has been annualized)

Third Quarter 2024 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q3 2024, Q2 2024, and Q2 2023 results and are in Canadian dollars)

Consolidated Revenue and Adjusted Gross Profit:
Total net revenue1 was $64.4 million, as compared to $61.1 million in the prior year period. The increase from the prior period is mainly due to growth in our global medical cannabis business and higher quarterly revenue in our plant propagation business, partially offset by a decline in our consumer cannabis net revenue.

Consolidated adjusted gross margin before fair value adjustments1 was 50% in Q3 2024 compared 46% in the prior year quarter. Adjusted gross profit before FV adjustments1 was $32.4 million in Q3 2024 (vs  $28.0  prior year quarter, an increase of 15.7%.

Medical Cannabis:
Medical cannabis net revenue1 was $45.1 million, a 16% increase from the prior year quarter, delivering 70% of Aurora’s Q3 2024 consolidated net revenue1 and 86% of Adjusted gross profit before fair value adjustments1.

The increase in net revenue1 of $6.2 million was primarily due to higher sales to Australia and Europe in the current period following the success of newly launched innovative cultivars in these markets. 

Adjusted gross margin before fair value adjustments1 on medical cannabis net revenue remained strong at 62% for the three months ended December 31, 2023, compared to 63% in the prior year quarter and within the Company’s target range of 60% and above. The adjusted gross margins before fair value adjustments held steady through sustainable cost reductions and improved efficiency in production operations with a partial shift to supplying Europe from Canada as the impact of closing our Nordic production facility begins to flow through, partially offset by slightly higher mix towards the international export market which average a slightly lower adjusted gross margin before fair value adjustments than the Canadian and EU medical markets.

Consumer Cannabis:
Aurora’s consumer cannabis net revenue1 was $11.6 million, compared to $14.6 million in the prior year quarter. The decrease was due to the decision to allocate product to higher margin markets.

Adjusted gross margin before fair value adjustments1 on consumer cannabis net revenue1 was 26%, increasing from 20% compared to the prior year quarter. The increase from the prior year comparative quarter is largely due to higher efficiency in production operations and product sales with higher margins relative to the comparative prior periods.

Plant Propagation:
Plant propagation net revenue1 was wholly comprised from the Bevo business, contributing $7.3 million of net revenue1 compared to $6.6 million in the prior year quarter. Historically, approximately 65-75% of plant propagation revenue and up to 80% of EBITDA has been earned in the first half of the calendar year.

Adjusted gross margin before fair value adjustments1 on plant propagation revenue was 18% for the Q3 2024 period and 15% for the prior year quarter, due to the seasonality of the business and sales mix of vegetables and ornamental plants.

Selling, General and Administrative (“SG&A”):
Adjusted SG&A1 was $27.5 million in Q3 2024, which excludes $6.8 million of restructuring and non-recurring, costs. Adjusted SG&A1 continues to be well controlled and in line with the Company’s current target of $30 million.

Adjusted R&D1, was $0.8 million in Q3 2024, which is relatively consistent as compared to the prior year quarter.

Net Loss:
Net loss from continuing operations for the three months ended December 31, 2023 was $25.2 million compared to net loss of $62.4 million for the same period in the prior year. The decrease in net loss of $37.2 million compared to the same period in the prior year is primarily due to an increase in gross profit of $32.7 million, a decrease in operating expenses of $10.4 million, offset with an increase in other expenses of $5.9 million

Adjusted EBITDA: 
Adjusted EBITDA1 was $4.3 million for the three months ended December 31, 2023, as compared to $3.0 million in the prior year quarter.

Fiscal Q4 2024 Expectations:

In fiscal Q4 2024, the Company expects revenue from Canadian medical and consumer segments to be steady quarter over quarter, while Europe and Australia should provide modest growth in their regions.
For plant propagation, we expect to see seasonally higher revenues and gross profit that should be in-line with historical performance in the comparable prior year period.
Revenue increases combined with ongoing cost control are expected to result in continued positive Adjusted EBITDA1 in Q4 2024.

Aurora’s achievement of significant and sustainable operating cost and SG&A reductions has now resulted in five consecutive quarters with positive adjusted EBITDA1. Continuing growth in positive adjusted EBITDA1 paves the path towards positive free cashflow in calendar year 2024.

During the three months ended December 31, 2023, the Company repurchased approximately $23.1 million (U.S.$17.0 million) in principal amount of convertible debentures at a 0.08% average discount to par value, for total approximate consideration of $23.2 million (U.S.$17.1 million), including accrued interest of approximately $0.1 million (U.S.$0.1 million). The remaining convertible debenture balance as of the date hereof is approximately $7.3 million (U.S.$5.3 million) and will be settled in cash at maturity in late February 2024, at which point Aurora’s cannabis business will be debt free.

 Key Quarterly Financial and Operating Results

($ thousands, except Operational Results)

Three months ended

31, 2023

31, 2022(6)

$ Change

$ Change

 30, 2023(6)

$ Change


Financial Results

Net revenue (1)(2a)




5 %



2 %

Medical cannabis net revenue (1)(2a)




16 %



3 %

Consumer cannabis net revenue (1)(2a)




(21 %)



(3 %)

Plant propagation net revenue (1)(2a)




10 %



2 %

Adjusted gross margin before FV adjustments on total net
revenue (2b)

50 %

46 %


4 %

51 %


(1 %)

Adjusted gross margin before FV adjustments on core
cannabis net revenue (2b)

55 %

51 %


4 %

55 %


0 %

Adjusted gross margin before FV adjustments on medical
cannabis net revenue (2b)

62 %

63 %


(1 %)

63 %


(1 %)

Adjusted gross margin before FV adjustments on
consumer cannabis net revenue (2b)

26 %

20 %


6 %

27 %


(1 %)

Adjusted gross margin before FV adjustments on plant
propagation net revenue (2b)

18 %

15 %


3 %

22 %


(4 %)

Adjusted SG&A expense(2d)(5)




12 %



(1 %)

Adjusted R&D expense(2d)




(12 %)



(17 %)

Adjusted EBITDA (2c)(5)




(46 %)



28 %

Balance Sheet

Working capital (2e,f,6)




(27 %)



27 %

Cannabis inventory and biological assets (3)




20 %



(2) %

Total assets




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