Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB) achieved positive adjusted EBITDA and reduced its debt even though it still recorded a net loss in its latest quarterly earnings, announced Thursday.
The company reported total revenues of C$61.7 million ($45.9 million), an improvement over the C$49.3 million reported in the previous quarter and C$60.6 million (1.8%) in the prior year period.
Net loss in the quarter was C$67.2 million, versus C$51.9 million in the prior quarter and C$75.1 million for the same time last fiscal year.
Aurora attributed the rising revenue to “growth across all cannabis business segments” as well as a full-quarter contribution of C$6.6 million from Bevo Farms, which the company acquired in August 2022. Cannabis revenues were up around 20% for the quarter.
Since 2021, Aurora has been trying to put itself on the path to profitability through cost cuts and high-margin medical cannabis revenue. In addition to the boost from Bevo, a strong euro beefed up European margins.
Adjusted EBITDA for the quarter was positive at C$1.4 million, versus a loss of C$7.4 million in the previous quarter and loss of C$7.1 million in the prior year period.
“We are pleased to have delivered on our commitment to achieve positive adjusted EBITDA in Q2 2023, following a tremendous effort to realize approximately $340 million of total annualized savings since February 2020,” said CEO Miguel Martin, who added that quarterly growth was primarily driven by its international medical program.
“Our Canadian rec business also demonstrated sequential growth driven by significant product innovation, and our Canadian medical cannabis business continued to benefit from strong patient relationships and high barriers to entry,” he added.
Aurora had around C$258.7 million worth of capital and wrote in its filings that the reduction of operating costs, access to a shelf prospectus to raise funds, and its current liquidity are enough to fund operating activities and cash commitments for investing, financing, and strategic moves.
“Looking ahead, we are focused on profitable growth opportunities across all segments, ongoing discipline in capital deployment, and our ability to generate positive operating cash flow as we continue to build value for shareholders,” Martin said.
The Canadian giant published its financial and operational results for the fiscal second quarter ending Dec. 31, 2022.