Aurora Cannabis Shares Jump On Q1 FY25 Earnings, Global Medical Marijuana Yields Record Revenue Of $343M
Canadian medical marijuana giant Aurora Cannabis Inc. (NASDAQ:ACB) (TSX:ACB) reported its financial and operational results Wednesday for the first quarter of fiscal 2025, revealing revenue of CA$83.44 million ($60.72 million) compared to CA$74.73 million in the same period of fiscal 2024. Aurora attributes the 12% increase from the prior period to 13% growth in its global medical cannabis business and 16% growth in its plant propagation business, slightly offset by lower quarterly revenue in its consumer cannabis.
“This was a milestone quarter for Aurora, as we delivered strong net revenue growth, a substantial increase in adjusted EBITDA, and positive free cash flow," stated CEO Miguel Martin. "Our impressive performance was driven by record net revenue in the rapidly growing global medical cannabis segment, and we look forward to building on our achievements in key markets such as Germany, Australia, and the UK throughout fiscal 2025 and beyond. The quarter was further supported by a record contribution from our Bevo plant propagation business, underscoring the strength of our diversified business model.”
The earnings release follows Aurora's partnership with Cogent International Manufacturing Ltd., a subsidiary of wellness innovator Vectura Fertin Pharma Inc. Under this commercial collaboration, Cogent will initially launch its newly developed CBD lozenge on Aurora’s Canadian medical marijuana patient platform, providing access to patient feedback that will be used to validate the product proposition and patient responses while building real-world patient data for future analysis.
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Q1 FY2025 Financial Results Compared To Q1 FY2024
- Net income from continuing operations was CA$4.8 million, compared to a net loss of CA$(20.2) million.
- Adjusted gross profit was CA$36.0 million, compared to CA$32.6 million.
- Adjusted gross margin before fair value adjustments was 43% in Q1 FY2025, compared to 44% in the prior year quarter.
- Adjusted EBITDA increased 87% to CA$4.9 million for the three months ended June 30, 2024 compared to CA$2.6 million.
- Medical marijuana revenue was CA$47.2 million, a 13% increase from the prior year quarter, delivering 57% of Aurora’s Q1 2025 consolidated net revenue and 91% of adjusted gross profit. The increase in net revenue of $5.6 million was primarily due to higher sales to Australia and a steady increase in sales in Canada to insurance-covered patients and larger basket sizes.
- Free cash flow was CA$6.49 million, compared to negative cash flow of CA$(11.69 million).
Aurora’s only remaining debt is a non-recourse debt of CA$52.4 million relating to Bevo Farms Ltd.
Fiscal Q2 2025 Expectations
The company projects continued strong net revenue and adjusted gross margins across its cannabis business, supported by net revenue growth in Europe and Australia.
Positive adjusted EBITDA is expected to continue while free cash flow is anticipated to be negatively impacted by several significant annual and one-time cash payments that typically occur in Q2 2025.
“The progress we made during the quarter sets a strong foundation for the rest of the fiscal year, and with our continued commitment to operational excellence and strategic growth, we are well-positioned to sustain this positive momentum. Our growth in global medical, the highest margin cannabis segment, alongside our strong balance sheet and ongoing fiscal discipline, are pivotal as we build on our achievement with respect to positive free cash flow,” Martin concluded.
Price Action
Aurora shares traded 9.39% higher at $6.43 per share during Wednesday's pre-market session.
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