Aurora Cannabis Announces Fiscal 2023 Second Quarter Results

12.4 min readPublished On: February 10th, 2023By

EDMONTON, AB – Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), the Canadian company opening the world to cannabis, announced its financial and operational results for the fiscal second quarter ended December 31, 2022. As a reminder, Fiscal 2023 is comprised of three quarters ending March 31, 2023.

“We are pleased to have delivered on our commitment to achieve positive Adjusted EBITDA1 in Q2 2023, following a tremendous effort to realize approximately $340 million of total annualized savings since February 2020. We have right-sized our business while remaining the #1 Canadian LP in global medical cannabis revenues, and having demonstrated organic quarter over quarter revenue growth across all of our cannabis segments during Q2 2023. Additionally, our robust balance sheet remains in a net cash position which puts it among the strongest in the industry, and we continued to make significant strides in reducing our debt in the recent quarter,” stated Miguel Martin, Chief Executive Officer of Aurora.

“Revenue growth in Q2 2023 was primarily driven by our unique, portable, and profitable international medical program. Our Canadian rec business also demonstrated sequential growth driven by significant product innovation, and our Canadian medical cannabis business continued to benefit from strong patient relationships and high barriers to entry. Q2 2023 also included the first full-quarter of results from our recent Bevo Agtech Inc. (“Bevo“) acquisition, for which we anticipate an even higher top-line and Adjusted EBITDA1 contribution in Q3 2023 versus Q2 2023 due to the inherent seasonality of this business,” he added.

“Looking ahead, we are focused on profitable growth opportunities across all segments, ongoing discipline in capital deployment, and our ability to generate positive operating cash flow as we continue to build value for shareholders,” he concluded.


1  This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See “Non-GAAP Measures” below for reconciliations of non-GAAP financial measures to GAAP financial measures.

Second Quarter 2023 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q2 2023, Q1 2023, and Q2 2022 results and are in Canadian dollars)


  • Total net revenue1 was $61.7 million, as compared to the prior quarter net revenue1 of $49.3 million and $60.6 million in the prior year period. The increase from the prior quarter was due to growth across all cannabis business segments and a full quarter contribution of $6.6 million from Bevo, acquired in August 2022.
  • Excluding the impact of the non-core bulk wholesales, adjusted gross margin before fair value adjustments on cannabis net revenue1 for Q2 2023 remained strong and steady, and well above the industry average, at 49% compared to 54% in Q1 2023 and 54% in Q2 2022. Sequentially, adjusted gross margin was impacted by growth in the consumer channel and incremental export revenue into developing countries, both of which deliver healthy gross margins but at levels below our Canadian and European medical businesses.

Medical Cannabis:

  • Medical cannabis net revenue1 was $39.5 million, a 25% increase from the prior quarter and a 14% decrease from the prior year period, delivering 64% of Aurora’s Q2 2023 consolidated net revenue1 and 87% of Adjusted gross profit before fair value adjustments1.
  • The increase in net revenue1 from Q1 2023 was primarily attributable to growth into international export markets such as AustraliaPoland, the UK, and Cayman Islands, demonstrating the Company’s ability to navigate complex import/export licensing requirements to participate in these high-growth markets. The decrease from the prior year quarter was primarily attributable to timing of sales to certain international export markets.
  • Adjusted gross margin before fair value adjustments1 on medical cannabis net revenue was 61% compared to 63% in the prior year period and 67% sequentially. The continued strength of the Company’s medical adjusted gross margins1 reflect the direct-to-patient model in Canada and strong and sustained presence in the high margin international medical business. The decrease is primarily driven by higher sales into certain developing international export markets, which yield a slightly lower adjusted gross margin1, but still contribute strong positive adjusted gross profits1.

Consumer Cannabis:

  • Consumer cannabis net revenue1 was $14.6 million, a 7% increase from the prior quarter. Excluding the one-time Q1 2023 refund of excise taxes, Q2 2023 net revenue1 was a 13% sequential increase.
  • The increase in net revenue1 from Q1 2023 was driven by growth in both Aurora’s premium brand San Rafael ’71, and by the Company’s value brand Daily Special, which offers a strong consumer potency/quality/price proposition.
  • Adjusted gross margin before fair value adjustmentson consumer cannabis net revenue was 20%, compared to 25% in the prior quarter and 23% in the comparable prior year period.

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

  • SG&A, including Research and Development (“R&D“), was $41.6 million in Q2 2023 which includes $14.0 million of restructuring, non-recurring, and out-of-period costs, and $0.9 million in market development costs.
  • Excluding the non-routine items noted above, SG&A and R&D continued to be well controlled and declining at $26.6 million during Q2 2023 versus $32.1 million in the prior quarter and $39.3 million in the prior year period, presented on a comparable basis.

Plant Propagation:

  • Plant propagation revenue1 was comprised wholly from the Bevo business, contributing $6.6 million of net revenue1 and represents an increase of $3.3 million from the prior quarter, which represented the truncated period from the date of closing of Aurora’s investment in Bevo on August 25, 2022. Bevo’s business, is reasonably predictable with customer orders known well in advance of planting dates, and in many instances requiring customer deposits prior to planting coupled with many long tenured customer relationships. However, Bevo’s business does exhibit operational seasonality, with the months of January to June representing the busiest operational and financial period for Bevo with July to December being less operationally intensive.

Net Loss:

Net loss for the three months ended December 31, 2022 was $67.2 million compared to $51.9 million in the prior quarter and $75.1 million for the same period in the prior year. The increase in net loss of $15.3 million from the prior quarter was primarily due to: (i) an increase in gross loss of $14.5 million and (ii) an increase of $2.3 million in impairment of property, plant and equipment. This was mainly offset by (i) an increase of $9.5 million in other gains, and (ii) a $7.1million increase in foreign exchange gains. The decrease in net loss of $8.0 million from the same period in the prior year was primarily due to an increase in other income of $24.0 million primarily consisting of: (i) an increase of $8.3 million in foreign exchange gains (ii) an increase of $6.8 million in other gains (iii) a decrease of $5.6 million in finance costs and (iv) a decrease of $2.0 million in impairment of property, plant and equipment and lower operating expenses of $5.9 million, partially offset by a lower gross profit of $21.8 million.

Adjusted EBITDA:

Adjusted EBITDA1 increased to positive $1.4 million in Q2 2023 versus a loss of $7.4 million in Q1 2023 and loss of $7.1 million in the prior year period. The increase in Adjusted EBITDA1, as compared to the previous quarter and the same period in the prior year is primarily attributable to reductions in SG&A and, for the sequential comparative, due also to revenue growth across all markets.

Operational Efficiency Plan, Balance Sheet Strength, & Cash Use:

Aurora has completed its previously announced strategic transformation plan. The achievement of significant and sustainable operating cost and SG&A reductions resulted in positive Adjusted EBITDA during Q2 2023.

Aurora has one of the strongest balance sheets in the Canadian Cannabis industry with approximately $310 million of cash, including $65 million of restricted cash as of February 8, 2023 and access to the base shelf prospectus filed on March 30, 2021 (the “2021 Shelf Prospectus“), including US $134.4 million remaining securities for sale under the 2021 at-the-market (ATM) program (the “ATM Program“). During the three months ended December 31, 2022, the Company issued 39,500,341 common shares under the ATM Program for net proceeds of $68.8 million (US $49.7 million).

During the three months ended December 31, 2022, the Company repurchased a total of $135.0 million (US $99.0 million) in principal amount of convertible senior notes due 2024 (“Senior Notes“) for $128.7 million (US $94.4 million), plus accrued interest. Aurora may, from time to time and subject to market conditions, repurchase its convertible notes, including in open market purchases and privately negotiated transactions.

Cash use is outlined in the following table:

($ thousands)

Q2 2023

Q2 2022 (2)

Q1 2023 (2)

Cash, Opening (1)




Cash used in operations, including working capital (3)




Capital expenditures and investments, net of disposals and government grant income




Acquisition of business, net of cash acquired







Debt and interest payments




Cash use




Investment in derivatives and proceeds from loans receivable




Proceeds raised through debt



Proceeds (costs) raised through equity financing




Cash raised




Effect of foreign exchange on cash and cash equivalents




Cash, Ending (1)




Total Debt




Net Cash (1)




(1)  Includes restricted cash of $65.0M at Q2 2023, $59.0M at Q1 2023, and $51.3M at Q2 2022.

(2)  Prior period comparatives have been recast to conform to the current period’s presentation.

(3)  Cash used in operations for Q2 2023 includes $15.5 million related to business transformation and $12.4 million related to annual payments of bonuses, business insurance premiums, and Health Canada permits.

Key Quarterly Financial and Operating Results

($ thousands, except Operational Results)

Q2 2023

Q2 2022

$ Change

% Change

Q1 2023

$ Change

% Change

Financial Results

Total net revenue (1)(2)




2 %



25 %

Medical cannabis net revenue (1)(2)




(14 %)



25 %

Consumer cannabis net revenue (1)(2)




2 %



7 %

Adjusted gross margin before FV adjustments on total net revenue (2)

45 %

53 %


(8 %)

50 %


(5 %)

Adjusted gross margin before FV adjustments on core cannabis net revenue (2)

49 %

54 %


(5 %)

54 %


(5 %)

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

61 %

63 %


(2 %)

67 %


(6 %)

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

20 %

23 %


(3 %)

25 %


(5 %)

Adjusted SG&A expense (2)




(33 %)



(17 %)

Adjusted R&D expense (2)




(25 %)



(14 %)

Adjusted EBITDA (2)




120 %



119 %

Balance Sheet

Working capital (2)




(15 %)



(20) %

Cannabis inventory and biological assets (3)




(33 %)



(23) %

Total assets




(59 %)



(12) %

Operational Results – Cannabis

Average net selling price of dried cannabis excluding bulk sales (2)




6 %



(10) %

Kilograms sold (4)




17 %



26 %

(1)  Includes the impact of actual and expected product returns and price adjustments (Q2 2023 – $2.0 million; Q1 2023 – $0.7 million; Q2 2022 – $3.7 million).

(2)  This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See “Non-GAAP Measures” below for reconciliations of non-GAAP financial measures to GAAP financial measures.

(3)  Represents total biological assets and inventory, exclusive of merchandise, accessories, supplies, consumables and plant propagation biological assets.

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

Forward Looking Statements

This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“forward-looking statements”). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements made in this news release include, but are not limited to, statements with respect to:

  • pro forma measures including revenue, cash flow, Adjusted gross margin before fair value adjustments1, and expected SG&A run-rates;
  • the Company’s achievement of the previously announced strategic transformation plan and positive Adjusted EBITDA1;
  • the Company’s continued focus on profitable growth opportunities, ongoing discipline in capital deployment, cost savings and Adjusted EBITDA1 targets;
  • the Company’s ability to navigate complex import/export licensing requirements to participate in high-growth markets;
  • balance sheet strength and availability of funds under the ATM Program;
  • the acquisition of Bevo and the anticipated contribution to top line and Adjusted EBITDA1; and
  • the creation of value for shareholders, including the future achievement of positive operating cash flow.

These forward-looking statements are only predictions. Forward looking information or statements contained in this news release have been developed based on assumptions management considers to be reasonable. Material factors or assumptions involved in developing forward-looking statements include, without limitation, publicly available information from governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which the Company believes to be reasonable. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the development of third party government and non-government consumer sales channels, management’s estimates of consumer demand in Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the risk of successful integration of acquired business and operations, management’s estimation that SG&A will grow only in proportion of revenue growth, the ability to expand and maintain distribution capabilities, the impact of competition, the general impact of financial market conditions, the yield from cannabis growing operations, product demand, changes in prices of required commodities, competition, and the possibility for changes in laws, rules, and regulations in the industry, epidemics, pandemics or other public health crises, including the current outbreak of COVID-19, and other risks, uncertainties and factors set out under the heading “Risk Factors” in the Company’s annual information form dated September 20, 2022 (the “AIF”) and filed with Canadian securities regulators available on the Company’s issuer profile on SEDAR at and filed with and available on the SEC’s website at The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.

Non-GAAP Measures

This news release contains reference to certain financial performance measures that are not recognized or defined under IFRS (termed “Non-GAAP Measures“). As a result, this data may not be comparable to data presented by other licensed producers of cannabis and cannabis companies. Non-GAAP Measures should be considered together with other data prepared in accordance with IFRS to enable investors to evaluate the Company’s operating results, underlying performance and prospects in a manner similar to Aurora’s management. Accordingly, these non-GAAP Measures are intended to provide additional information and to assist management and investors in assessing financial performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

The information included under the heading “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” in the Company’s management’s discussion and analysis for the three and six months ended December 31, 2022 and 2021 (the “MD&A“) is incorporated by reference into this news release. The MD&A is available on the Company’s issuer profile on SEDAR at

(This information is primarily sourced from Aurora Cannabis Inc.  Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).

About the Author: News Team

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