Aurora Cannabis Announces Fiscal First Quarter 2021 Results



Aurora Cannabis Inc. (the “Company” or “Aurora“) (NYSE: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, today announced its financial and operational results for the first quarter of fiscal 2021 ended September 30, 2020.

“We continue to take the necessary steps to execute our plan and transform our business to achieve sustainable profitability, and ultimately positive cash flow,” stated Miguel Martin, Chief Executive Officer of Aurora Cannabis. “Our Q1 2021 results are transitional but do highlight successes across a number of diverse profit pools. We remain the leader by revenue in the high-margin Canadian medical market, our international medical business experienced more than 40% net revenue growth this quarter, and our CBD brand Reliva is #1 ranked by Nielsen in the U.S. CBD sector.”

“While we are not satisfied with our past performance in the growing Canadian consumer business, we have a sense of urgency in the execution of our tactical plan to grow profitable market share. Our efforts are directed at delivering the highest quality products, refocusing on our leading premium and ultra-premium brands, better allocating our sales and marketing spend, and executing key account partnerships at both the province and retail levels.”

“We have also taken action to improve our liquidity and strengthen our balance sheet. It was a responsible decision to raise capital using our ATM in today’s environment and the cash is expected to ensure we have the runway needed to compete with our peers. Cannabis companies are being evaluated on both their business performance and liquidity and we wanted to ensure that we are addressing both. I remain confident in Aurora’s prospects and it is my utmost priority to secure our winning future.”

First Quarter 2021 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q1 2021 and Q4 2020 results and are in Canadian dollars)

Q1 2021 total and cannabis net revenue1 was $67.8 million, a slight increase from the $67.5 million of cannabis net revenue1 in the prior quarter.

Adjusted gross margin before fair value adjustments on cannabis net revenue1 remained strong at 48%, versus 50% in Q4 2020. Excluding $2.6 million of ramp up costs at Aurora Nordic 1, the Company’s Q1 2021 adjusted gross margin before fair value adjustments on cannabis net revenue1 was 52%.

Adjusted EBITDA loss was $57.9 million in Q1 2021, which includes restructuring payments such as contract and employee termination costs of $47.4 million. Excluding these impacts, the Company’s Adjusted EBITDA loss, as defined under the term credit facility, is $10.5 million. Aurora was in full compliance with its September 30, 2020 term debt covenants. As a reminder, the Company’s goal is to achieve positive Adjusted EBITDA in Q2 2021.

Cash balance at November 6, 2020 was approximately $250 million.

Consumer cannabis:

  • Consumer cannabis net revenue1 was $34.3 million, a 3% decrease from the prior quarter. Of note, Aurora’s consumer cannabis extract net revenue increased by $3.6 million as compared to the prior quarter, driven by Aurora’s focus on high-growth extract segments such as vapes, edibles and concentrates, and a $1.1 million increase in U.S. CBD.
  • Adjusted gross margin before fair value adjustments on consumer cannabis net revenue1 was 38% in Q1 2021 versus 35% in the prior quarter, primarily driven by sales mix shifting toward higher margin derivative products

Medical cannabis:

  • Medical cannabis net revenue1 was $33.5 million, a 4% increase from the prior quarter. The increase was primarily attributable to a strong performance in the international medical business, which grew 41% quarter over quarter, and from consistent performance in Aurora’s leading Canadian medical operation.
  • Adjusted gross margin before fair value adjustments on medical cannabis net revenue1 was 59% in Q1 2021 versus 67% in the prior quarter. Excluding $2.6 million of ramp-up costs at Aurora Nordic 1, Q1 2021 adjusted gross margin before fair value adjustments on medical cannabis was 67%.

Selling, General and Administrative (“SG&A”) and Adjusted EBITDA:

  • SG&A, including Research and Development (“R&D”), was $46.9 million in Q1 2021, down $19.6 million from the prior quarter as a result of the Company’s Business Transformation Plan. Included in SG&A is $4.1 million of costs related to restructuring charges, and severance and benefit costs associated with the Business Transformation Plan. Excluding these impacts, Q1 SG&A and R&D was $42.8 million.
  • Adjusted EBITDA1 in Q1 2021 was a loss of $57.9 million, compared to the prior quarter Adjusted EBITDA loss of $29.6 million when excluding R&D and other restructuring costs. The Q1 increased loss is primarily attributable to the legal settlement and contract termination fees and costs associated to ongoing severance and benefits associated with the business transformation plan. Excluding these impacts, Adjusted EBITDA loss decreased by $19.1 million, or 64%, to $10.5 million, the third sequential quarter of significantly improved Adjusted EBITDA.

Additional Financial Information:

  • Capital Expenditures (“CapEx”) were approximately $13.2 million in Q1 2021, a decline from the $16.4 million reported in Q4 2020.
  • Aurora continues to execute its announced plan for reducing production and complexity through the closure of 5 cultivation facilities, with three facilities now fully closed. Supporting the Company’s drive to align its production footprint to market and geographic demand, Aurora has also recently received flower and oil sales licensing at its EU GMP certified Aurora Nordic 1 facility, located in Odense, Denmark, which is expected to serve European and international medical markets.



These terms are non-GAAP measures, see “Non-GAAP Measures” below.

Fiscal Q1 2021 Cash Use: Significant Improvement in Cash Used in Operations
Total cash use in Q1 2021 was similar to the prior quarter. However, the mix within the use of cash showed significant positive progress.

In Q1 2021, the Company used $25.2 million in cash to fund operations, excluding working capital investments, and used $47.4 million for contract and employee termination costs, including the previously announced exit of the UFC agreement. Cash used to pay for capital expenditures in Q1 2021 was $15.0 million versus $32.0 million in the prior quarter, as many long-lead projects are now complete. Cash used in operations and for capital expenditures are crucial metrics in Aurora’s drive toward generating sustainable positive free cash flow, and both have improved significantly and consistently over the past several quarters.

Increased net working capital used $37.0 million in the quarter, driven by a $13.8 million increase in accounts receivable and a $25.1 million increase in inventory. The Company continues to execute plans to more closely align production levels with demand.

Given Aurora’s continued strong gross margins, reduced level of SG&A expense and capital expenditures, and ongoing improvements in working capital investment, management expects the Company to continue its move toward positive cash flow during fiscal 2021.

The main components of cash source and use in Q1 2021 were as follows:

($ thousands)

Q1 2021

Cash Flow

Cash, Opening


Cash used in operations excluding legal
settlement, contract termination fees and
restructuring costs


Working capital change


Legal settlement, contract termination fees and
restructuring costs


Capital expenditures


Debt and interest payments


Cash use


Proceeds raised from sale of marketable
securities and investments in associates


Proceeds raised through ATM


Cash raised


Cash, Ending



Refer to “Condensed Consolidated Interim Statement of Cash Flows” in the “Condensed Consolidated Interim Financial Statements (unaudited)” for our cash flow statements prepared in accordance with IAS 7 – Statement of Cash Flows.

Q1 2021 Key Financial and Operational Metrics

Base Shelf Prospectus

($ thousands, except Operational Results)

Q1 2021

Q4 2020 (8)

$ Change


Financial Results

Total net revenue (1)





Cannabis net revenue (1)(2)(3a)





Medical cannabis net revenue (2)(3a)





Consumer cannabis net revenue (1)(2)(3a)





Adjusted gross margin before FV adjustments on
cannabis net revenue (2)(3b)(4)







Adjusted gross margin before FV adjustments on
medical cannabis net revenue (2)(3b)(4)







Adjusted gross margin before FV adjustments on
consumer cannabis net revenue (2)(3b)







SG&A expense





R&D expense





Adjusted EBITDA (3c)(5)





Balance Sheet

Working capital





Cannabis inventory and biological assets (6)





Total assets





Operational Results – Cannabis

Average net selling price of dried cannabis (2)





Kilograms sold (7)






Includes the impact of actual and expected product returns and price adjustments (three months ended September 30, 2020 – $0.8 million; three months ended June 30, 2020 – $1.9 million).


These terms are defined in the “Non-GAAP Measures” section below.


Refer to the following sections for reconciliation of non-GAAP measures to the IFRS equivalent measure:


Refer to the “Net Revenue” section for a reconciliation of cannabis net revenue to the IFRS equivalent.


Refer to the “Adjusted Gross Margin” section for reconciliation to the IFRS equivalent.


Refer to the “Adjusted EBITDA” section for reconciliation to the IFRS equivalent.


Included in Q1 2021 Adjusted gross margin before FV adjustments on cannabis net revenue and Adjusted gross margin before FV adjustments on medical cannabis net revenue is $2.6 million of additional cost of sales from the ramp up of European operations after receiving our sales license for the Aurora Nordic 1 facility. Removing this charge, for which a nominal amount of revenue had been recognized, would result in these measures being reported as 52% and 67%, respectively.


Included in Q1 2021 Adjusted EBITDA is $43.3 million from contract and legal termination costs and $4.1 million from ongoing divested businesses and severance and benefits costs associated with our business transformation plan. Excluding these expenses, Adjusted EBITDA loss, as defined under the term credit facility, is $10.5 million.


Represents total biological assets and cannabis inventory, exclusive of merchandise, accessories, supplies and consumables.


The kilograms sold is offset by the grams returned during the period.


As a result of the Company’s divestment of its wholly owned subsidiaries Aurora Larssen Projects Ltd. (“ALPS”) and Aurora Hemp Europe (“AHE”), the operations of ALPS and AHE have been presented as discontinued operations and the Company’s operational results have been retroactively restated, as required. Refer to Note 10(b) of the Financial Statements for more information about the divestiture.

On October 27, 2020, Aurora announced its completion of the previously filed At-The-Market (“ATM”) program and the filing of a new short form base shelf prospectus. The new base shelf prospectus is expected to provide the Company with continued financial flexibility going forward.

Conference Call

Aurora will host a conference call today, November 9, 2020, to discuss these results. Miguel Martin, Chief Executive Officer, and Glen Ibbott, Chief Financial Officer, will host the call starting at 8:30 a.m. Eastern time. A question and answer session will follow management’s presentation.


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