Aurora Cannabis Inc. (NASDAQ: ACB)(TSX: ACB) is confident that its endeavours in Europe will provide positive results by the end of the year.
On Wednesday, the cannabis producer released its financial statements for the fourth quarter ended June 30 this year and saw that its medical cannabis revenue accounted for 72.8 per cent of its net revenue this quarter with $36.6 million.
The increase in revenue from medical cannabis was due to the company’s focus on international operations which was around 35 per cent higher than the previous quarter.
Total revenue for the quarter reached $50.2 million from $50.4 million in the last quarter.
Net loss for Q4 was $618.8 million which was due to non-cash impairment charges of $505.1 million from write-down goodwill, intangible assets and property, plant and equipment.
The company says the impairment charges were triggered by changes in the market conditions and the current capital market environment including higher rates of borrowing and lower foreign exchange rates.
Aurora also reported negative adjusted earnings before interest, taxes, and depreciation (EBITDA) of $12.9 million for the quarter from $11.4 million in the prior quarter and $21.8 million in the last year period.
Adult-use cannabis net revenue reached $12.6 million which is a 22.2 per cent increase from $10.3 million. The increase was due to adding Thrive’s net revenue of $1.4 million from May to June.
The company says it remains the number one Canadian licensed producer in global medical cannabis revenues and expects the high-margin, high-growth segment to be a key driver for future profitability.
Aurora says it continues to expect a positive adjusted EBITDA run rate by the end of the year and remains on track with its previously announced cost-saving targets of up to $170 million in annualized savings.
Company stock went down by 7.54 per cent on Wednesday to $1.74 on the Toronto Securities Exchange.
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The company says it will continue to enhance the long-term value of its differentiated global cannabis business by quickly identifying highly profitable growth opportunities, deploying capital in a disciplined manner and continuing to rationalize its cost structure.
Aurora says its strengthened balance sheet enabled an early repurchase of $155.3 million in convertible debt during the quarter while providing it with the ability to pursue strategic and accretive acquisitions.
These include the purchase of a controlling interest in Bevo Farms, one of the largest suppliers of propagated vegetables and ornamental plants in North America and Thrive Cannabis, which is widely known for its award-winning brand, Greybeard.
“During fiscal 2022, our international medical cannabis net revenues increased by over 70%; our leadership in key markets such as Germany, UK, Australia and Poland demonstrates our unique, portable and profitable international medical program,” CEO Miguel Martin said.
“We are beginning to see signs of stabilization in our Canadian adult recreational segment and are excited about the contributions from the Thrive acquisition which continues to advance our premiumization strategy,” he added.
“Finally, our investment in science is beginning to pay dividends; we delivered nine new proprietary cultivars to market during the year, providing rotation and variety to consumers and driving meaningful improvements in yield.”