Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) announced its financial and operational results for the second quarter of fiscal 2021 ending December 31, 2020. Aurora said that the total and cannabis net revenue before provisions was $70.3 million, an 11% increase over last year’s second quarter and a 2.5% sequential increase. After accounting for return and price provisions, the quarter’s total cannabis net revenue was $67.7 million, a 28% increase in cannabis net revenue over the prior year’s second quarter.
The company’s net loss, which wasn’t mentioned in the press release was $292 million dollars. The net loss per diluted share was $1.74. The cash balance as of February 10, 2021, was approximately $565 million.
“Aurora had an excellent second quarter, and I’m pleased that we’re advancing nicely against the plan we laid out in September of 2020,” stated Miguel Martin, Chief Executive Officer of Aurora Cannabis. “For the period, our core revenue strength in medical and consumer was complemented by initial rollouts in vape products and concentrates. Combined, these elements are part of the proven, regulated CPG strategy we’ve adopted. Adjusted EBITDA for the quarter, while vastly improved year over year, was impacted by several decisions that we believe will clear a path for our premium product focus and more variable cost model. We are confident that this will give Aurora maximum flexibility and position the organization to drive significant cashflow in the coming quarters.”
Consumer cannabis net revenue was $28.6 million ($31.1 million excluding provisions), a 25% increase from the prior year. Additionally, Aurora’s consumer cannabis derivative products net revenue increased by $1.7 million sequentially, driven by product launches in vapes, edibles, and concentrates. Medical cannabis net revenue was $38.9 million ($39 million excluding provisions), a 42% increase from the prior-year period. The increase was primarily attributable to a continued strong performance in both the international and Canadian medical businesses. International medical sales grew by 562% over the prior year’s comparative period.
SG&A, including Research and Development, was $44.4 million in the quarter, down $49.7 million or 53% from the prior-year period as a result of the company’s Business Transformation Plan. Included in SG&A and R&D in Q2 2021 is $2.1 million of costs related to restructuring charges and severance and benefit costs associated with the Business Transformation Plan. Excluding these impacts, Q2 2021 SG&A and R&D was $42.3 million.
On January 26, 2021, Aurora closed its bought deal public offering of units for total gross proceeds of $137.9 million. The company sold 13,200,000 units at a price of US$10.45 per Unit, including 1,200,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.
Martin added, “To further support this strategy, we have also focused on improving our cash burn, margins, and overall financial flexibility. To that point, our year over year cash use has decreased by 74% to $70.5 million, our normalized margins remain solid particularly in medical, and our recently amended credit facility gives Aurora much-improved optionality as opportunities arise. Combined with $565 million in cash on our balance sheet today, Aurora will continue to be a long-term player in the global cannabinoid market and increasingly positioned to deliver for shareholders over the long run.”
Allan Cleiren, Chief Operating Officer, has decided to retire from the company effective March 31, 2021.