Aurora Cannabis (ACB) reported a narrower adjusted loss in its fiscal fourth quarter, compared to the prior quarter, as revenue grew strongly and production costs declined.
Net revenue surged by 52% to 98.9 million Canadian dollars ($75 million) during the three months that ended June 30, from 65.1 million dollars in the fiscal third quarter, as production volume increased by 86%. Net revenue for the full financial year more than tripled from a year ago to 247.9 million dollars.
Group turnover increased as Canadian consumer cannabis revenue soared by 52% while medical cannabis sales also ticked up by 10%, which was also the percentage increase in the company’s medical patient base over the previous quarter.
Adjusted loss before interest, tax, depreciation, and amortization came in at 11.7 million Canadian dollars, which is 68% narrower than 36.6 million dollars in the third quarter, with the company reporting that its cash cost to produce per gram of cannabis sold declining by 20% sequentially to 1.14 dollars per gram in the fiscal fourth quarter.
“Our cultivation execution continues to drive production costs lower and improve gross margins,” Chief Financial Officer Glen Ibbott said in the statement.
Looking ahead, the company said it would continue to make the necessary investments to build long-term value for shareholders. The introduction of new product formats to the Canadian consumer market this fall represents a significant opportunity and Aurora expects to have a product line-up ready to launch in December.
“With the Canadian launch of derivative products in the coming months, we have made the necessary investments to ensure readiness and focus on a variety of value-added products,” Ibbott said in the statement.
As part of the US market strategy, the company is considering its stakeholders and how various state and federal regulations will affect its business prospects. It said a number of alternatives to grow Aurora’s presence in the US market were under evaluation.