Edmonton, Alberta-based Aurora Cannabis posted positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) worth 1.4 million Canadian dollars ($1 million) in its second fiscal quarter of the year, the company announced late Thursday.
The positive adjusted EBITDA, a non-GAAP financial measure, was in line with Aurora’s prior guidance.
The company’s net loss for the October-December quarter amounted to CA$67.2 million, an improvement over the previous year’s quarterly loss but up from the previous quarter’s loss of CA$51.9 million.
Aurora’s sales in the quarter were CA$61.7 million, a small improvement over the comparable quarter the previous year.
The sales momentum, albeit small, stands out in comparison to rivals such as Canopy Growth, whose sales dropped 28% in the October-December 2022 quarter, compared to one year earlier.
On a conference call with analysts, CEO Miguel Martin said Aurora’s newest milestone is achieving positive cash flow, which he said would be a multiquarter initiative.
“Our enthusiasm for the future is anchored by our No. 1 position in global medical cannabis among Canadian LPs,” Martin said on the call, adding that Aurora holds the top market share position in Canada’s medical cannabis market.
“With more developing countries poised to open, we think the top line growth should continue.”
Aurora also said it completed a previously announced transformation program, which involved securing upward of CA$170 million in cash savings annually via significant layoffs and asset sales.
Part of that transformation included a renewed focus on medical cannabis sales.
Aurora’s medical revenue in the quarter was CA$39.5 million, which represents a 25% increase from the previous quarter but a 14% decrease from the same quarter the previous year.
Aurora attributed the quarterly growth in the medical unit to improving international export markets, such as Australia, Poland, the United Kingdom and the Cayman Islands.
“There’s no question that, at some point, you’re going to see a significant amount of profitable opportunities around the globe. We believe in medical first,” Martin told analysts.
Recreational cannabis sales inched 2% higher year-over-year to CA$14.6 million in the quarter.
Aurora changed its fiscal year-end to March 31, meaning the current fiscal year will consist of only three quarters.
Aurora said it ended the quarter with CA$310 million of cash.
Shares of Aurora trade as ACB on the Toronto Stock Exchange and the Nasdaq.
Matt Lamers can be reached at matt.lamers@mjbizdaily.com.
