Aurora Cannabis Inc (NASDAQ:ACB) stock fell 1.78% (As on June 15, 11:41:01 AM UTC-4, Source: Google Finance) after the company continues to log high net losses, recording a quarterly loss of $87 million versus $67.2 million in the second quarter. The company blamed the jump in losses to an increase of $60 million in other expenses driven by changes in fair value on derivative investments. Aurora said that offsetting these mark-to-market changes, the company actually improved gross profit by $34.8 million and decreased operating expenses by $4.1 million.
Aurora Cannabis Inc. (CNW Group/Aurora Cannabis Inc.)
ACB in the third quarter of FY 23 has reported the total net revenue of $64 million, as compared to the prior quarter net revenue1 of $61.7 million and $50.4 million in the prior year period. The increase from the prior quarter was due to the contribution of $10.8 million from Bevo, acquired in August 2022. Medical cannabis net revenue1 was $38 million, a 3% decrease from the prior quarter, delivering 59% of Aurora’s Q3 2023 consolidated net revenue and 75% of Adjusted gross profit before fair value adjustments. The slight decrease in net revenue from Q2 2023 is largely due to a temporary situation of limited supply of high-demand cultivars in certain EU markets as the Company had production issues at its Nordic production facility. Following the year end, in May 2023, the Company made the decision to close the Nordic production facility and to return to providing European supply from Canada, a change expected to improve reliability of supply of existing and new, high potency cultivars, and increase gross margins over time. The revenue decrease was partially offset with higher volumes sold into Australia, a key export market for the Company. Despite the significant structural challenges of the Canadian adult use market, Aurora’s consumer cannabis net revenue was steady at $14.5 million, compared to $14.6 million in the prior quarter. Plant propagation net revenue1 was wholly comprised from the Bevo business, contributing $10.8 million of net revenue and represents an increase of $4.1 million from the prior quarter.
Aurora expects cannabis net revenue for the fiscal first quarter 2024 to be largely similar to the fiscal third quarter 2023, with the geographical mix slightly weighted towards the international medical segment.
The company expects adjusted gross margins to be consistent with the fiscal third quarter 2023 and expects to maintain its stated objective of a quarterly SG&A expense run rate below $30 million.