EDMONTON, AB – Aurora Cannabis Inc., a leading Canada-based global medical cannabis company, announced its financial and operational results for the fourth quarter and fiscal year 2024. As the fiscal year 2023 consisted of three quarters, the year-over-year comparison quarter for Q4 2024 ending March 31, 2024 is Q3 2023 ending March 31, 2023.
“We are incredibly pleased to be reporting our strongest fiscal year ever at Aurora. Total fiscal year 2024 net revenue increased 21% compared to the trailing four quarters, while adjusted EBITDA was positive on an annualized basis for the first time in our history, reaching $12.8 million. We also strengthened our balance sheet, ending with a strong net cash position of approximately $180 million as of March 31, and fully repaid our convertible debt,” said Chief Executive Officer Miguel Martin.
“Aurora is the largest global medical cannabis company in nationally legal markets and our leadership is best differentiated by serving the diverse needs of patients across the world. In Q4 2024, global medical cannabis net revenue increased 20% year-over-year, supported by the recent acquisition of MedReleaf Australia, where we saw significant growth, along with higher sales in Poland and the UK. We also achieved our highest quarterly adjusted gross margin in medical cannabis of 66%, far ahead of our targeted range of 60%. These results are encouraging as we continue to progress towards our next milestone of positive free cash flow by December 31,” concluded Mr. Martin.
Fourth Quarter 2024 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q4 2024, Q3 2024, and Q3 2023 results and are in Canadian dollars)
Consolidated Revenue and Adjusted Gross Profit
Total net revenue was $67.4 million, as compared to $64.0 million in the prior year period. The 5% increase from the prior period was mainly due to 20% growth in our global medical cannabis business, partially offset by lower quarterly revenue in our consumer cannabis business, and to a far lesser extent, our plant propagation business.
Consolidated adjusted gross margin before fair value adjustments was 49% in Q4 2024 and in the prior year quarter. Adjusted gross profit before FV adjustments was $33.3 million in Q4 2024 vs $31.0 million in the prior year quarter, an increase of 8%.
Medical Cannabis
Medical cannabis net revenue was $45.6 million, a 20% increase from the prior year quarter, delivering 68% of Aurora’s Q4 2024 consolidated net revenue and 90% of adjusted gross profit before fair value adjustments.
The increase in net revenue1 of $7.7 million was primarily due to higher sales to Australia and Europe in the current period following the success of newly launched innovative cultivars in these markets.
Adjusted gross margin before fair value adjustments on medical cannabis net revenue reached 66% for the three months ended March 31, 2024, compared to 60% in the prior year quarter and within the Company’s target range of 60% and above. The adjusted gross margins before fair value adjustments improved through sustainable cost reductions, higher selling prices in Australia, and improved efficiency in production operations, including sourcing for Europe from Canada due to the closure of the Aurora Nordic production facility.
Consumer Cannabis
Aurora’s consumer cannabis net revenue was $10.2 million, compared to $14.5 million in the prior year quarter. The decrease was due to our decision to prioritize the supply of our GMP manufactured products to our high margin international business rather than the consumer business, which offers lower margins.
Adjusted gross margin before fair value adjustments on consumer cannabis net revenue was 16%, decreasing from 25% compared to the prior year quarter. The decrease from the prior year comparative quarter is largely due to product sales with lower margins relative to the comparative prior period.
Plant Propagation
Plant propagation net revenue was wholly comprised of the Bevo business, that contributed $10.4 million of net revenue compared to $10.8 million in the prior year quarter. Historically, approximately 65-75% of plant propagation revenue and up to 80% of EBITDA has been earned in the first half of the calendar year.
Adjusted gross margin before fair value adjustments on plant propagation revenue was 25% for Q4 2024 and 36% for the prior year quarter. This shift was due primarily to timing of certain revenues being moved to Q1 2025, the period ending June 30, 2024, which can be expected given the typical seasonality of the plant propagation business.
Selling, General and Administrative
Adjusted SG&A was $31.6 million in Q4 2024, which excludes $8.0 million of restructuring and non-recurring costs. Adjusted SG&A was slightly above the Company’s previous target of $30 million due to the incremental SG&A following the acquisition and continuing integration of MedReleaf Australia.
Adjusted R&D, was $0.7 million in Q4 2024, decreased $0.9 million compared to the prior year quarter.
Net Loss
Net loss from continuing operations for the three months ended March 31, 2024 was $20.8 million compared to net loss of $76.2 million for the prior year period. The decrease in net loss of $55.4 million compared to the comparative prior quarter is primarily due to an increase in gross profit of $27.3 million, a decrease in operating expenses of $1.1 million, and a decrease in other expenses of $29.4 million.
Adjusted EBITDA
Adjusted EBITDA was $1.9 million for the three months ended March 31, 2024 compared to $2.0 million for the prior year quarter.
Convertible Senior Notes Repayment
During the three months ended March 31, 2024, the Company repaid an aggregate of approximately $7.2 million (US$5.3 million), representing the final repayment of the principal amount of its convertible senior notes and Aurora’s cannabis business is now debt free.
Fiscal Q1 2025 Expectations
In Q1 2025, the period ending June 30, 2024, the Company expects to achieve consolidated net revenue percentage growth in the mid to high teens from Q4 2024. This expected increase in net revenue is driven by:
Growth in high margin international medical cannabis revenue from recent regulatory reforms in Germany which is expected to increase the size of the market, combined with continued strength in key European markets, as well as incremental revenue from MedReleaf Australia; and
Our plant propagation segment typically experiences a seasonally higher quarter as it completes its peak spring floral sales period.
Consolidated adjusted gross margin for each individual segment are typically similar on quarter over quarter basis, with a higher mix contribution from plant propagation.
Positive adjusted EBITDA should be higher compared to the fourth quarter as a result of revenue growth combined with comparable consolidated margins.
Operating cash flow is expected to improve in Q1 2025 compared to Q4 2024.
Achieving Positive Free Cashflow
The Company views the target of positive free cashflow by end of calendar year 2024 as being achievable because of the following:
- Positioned to deliver continued increases in global medical cannabis, building on the growth expected in Q1 2025, driven by the full recognition of revenue in Australia as well as further growth in key European markets.
- Operating expenditure and gross margins are positioned to be in line with previously stated targets leading to continued strong positive adjusted EBITDA.
- Disciplined working capital management and maintenance capital expenditure of approximately $2.0 million a quarter.
About Aurora Cannabis
Aurora is opening the world to cannabis, serving both the medical and consumer markets across Canada, Europe, Australia and South America. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company’s adult-use brand portfolio includes Drift, San Rafael ’71, Daily Special, Tasty’s, Being and Greybeard. Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co., as well as international brands, Pedanios, Bidiol, IndiMed and CraftPlant. Aurora also has a controlling interest in Bevo Farms Ltd., North America’s leading supplier of propagated agricultural plants. Driven by science and innovation, and with a focus on high-quality cannabis products, Aurora’s brands continue to break through as industry leaders in the medical, wellness and adult recreational markets wherever they are launched.
Aurora’s common shares trade on the NASDAQ and TSX under the symbol “ACB”.
