Aurora Cannabis (NASDAQ:ACB) (TSX:ACB) announced its financial and operational results for the second quarter fiscal 2022 ended December 31, 2021.
"During the second quarter, we improved our Adjusted EBITDA by $2.5 million over Q1, moving us closer to our profitability goal. Our focus remains on further cost reductions, and we are pleased to announce today that we expect to reach the high end of the $60 to $80 million range," stated Aurora's CEO Miguel Martin. "Our balance sheet remains among the strongest in the industry, with approximately $445 million in cash as of yesterday. This gives us significant working capital to support organic growth and positions us to pursue strategic M&A opportunities."
Martin trumpeted international medical marijuana markets as Aurora's key to future growth as it reported a $75.1 million loss in its most recent quarter.
"Q2 total cannabis net revenue held steady sequentially, driven by our industry leading, high margin global medical cannabis business. New international markets are rapidly opening, and with the unique ability to navigate complex regulatory environments, we see a significant revenue opportunity of which we are at the forefront," Martin said. "While the Canadian adult-use market continues to face challenges, we are focused on introducing a new range of products set to launch this spring."
Here's the Breakdown
- Global cannabis net revenue of $60.6 Million
- Adjusted EBITDA improved by 22% to a loss of $9.0 Million versus Q1 2022
- Company reaffirms goal of adjusted EBITDA profitability by H1/2023
- Transformation plan ahead of schedule; company now expects to realize upper end of $60 to $80 Million range in total cost savings by H1/2023; ~$60 million annualized savings implemented to date
- Company remains #1 Canadian LP in global medical cannabis; international cannabis revenue increased 24% from Q1 2022
Though the Edmonton-based cannabis company is dabbling in Israel, Australia and Europe, it believes the U.S. and many other regions have revenue-generating potential, if the wave of pot legalization continues around the globe.
“We expect a domino-like effect as acceptance grows,” Martin said on a Thursday call with analysts.
“Where there is money to be made in a federally-regulated structure, Aurora will be there and we will win.”
