Mr. Miguel Martin reports

AURORA CANNABIS FILES FULL YEAR RESULTS AND ANNOUNCES FISCAL 2024 FOURTH QUARTER

Aurora Cannabis Inc. has released 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 ended March 31, 2024, is third quarter 2023 ended 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 per cent compared to the trailing four quarters while adjusted [earnings before interest, taxes, depreciation and amortization were] 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 per cent year over year, supported by the recent acquisition of MedReleaf Australia, where we saw significant growth, along with higher sales in Poland and the [United Kingdom]. We also achieved our highest quarterly adjusted gross margin in medical cannabis of 66 per cent, far ahead of our targeted range of 60 per cent. These results are encouraging as we continue to progress towards our next milestone of positive free cash flow by Dec. 31," concluded Mr. Martin.

Fourth quarter 2024 highlights (unless otherwise stated, comparisons are made between fiscal Q4 2024, Q3 2024 and Q3 2023 results)

Consolidated revenue and adjusted gross profit

Total net revenue was $67.4-million, as compared with $64.0-million in the prior-year period. The 5-per-cent increase from the prior period was mainly due to 20-per-cent growth in the company's global medical cannabis business, partially offset by lower quarterly revenue in its consumer cannabis business and, to a far lesser extent, its plant propagation business.

Consolidated adjusted gross margin before fair value adjustments1 was 49 per cent in Q4 2024 and in the prior-year quarter. Adjusted gross profit before fair value adjustments was $33.3-million in Q4 2024 versus $31.0-million in the prior-year quarter, an increase of 8 per cent.

Medical cannabis

Medical cannabis net revenue was $45.6-million, a 20-per-cent increase from the prior-year quarter, delivering 68 per cent of Aurora Cannabis's Q4 2024 consolidated net revenue and 90 per cent of adjusted gross profit before fair value adjustments.

The increase in net revenue 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 per cent for the three months ended March 31, 2024, compared with 60 per cent in the prior-year quarter and within the company's target range of 60 per cent 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 Cannabis's consumer cannabis net revenue was $10.2-million, compared with $14.5-million in the prior-year quarter. The decrease was due to its decision to prioritize the supply of its good manufacturing practice manufactured products to its 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 per cent, decreasing from 25 per cent compared with 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 composed of the Bevo business that contributed $10.4-million of net revenue compared with $10.8-million in the prior-year quarter. Historically, approximately 65 to 75 per cent of plant propagation revenue and up to 80 per cent of EBITDA have been earned in the first half of the calendar year.

Adjusted gross margin before fair value adjustments on plant propagation revenue was 25 per cent for Q4 2024 and 36 per cent for the prior-year quarter. This shift was due primarily to timing of certain revenues being moved to first quarter 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 research and development of $700,000 in Q4 2024 decreased $900,000 compared with the prior-year quarter.

Net loss

Net loss from continuing operations for the three months ended March 31, 2024, was $20.8-million compared with net loss of $76.2-million for the prior-year period. The decrease in net loss of $55.4-million compared with 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 with $2.0-million for the prior-year quarter.

Convertible senior note repayment

During the three months ended March 31, 2024, the company repaid an aggregate of approximately $7.2-million ($5.3-million (U.S.)), representing the final repayment of the principal amount of its convertible senior notes, and Aurora Cannabis's cannabis business is now debt-free.

Fiscal first quarter 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 are expected to increase the size of the market, combined with continued strength in key European markets, as well as incremental revenue from MedReleaf Australia.
• The company's 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 is typically similar on a quarter-over-quarter basis, with a higher mix contribution from plant propagation.
• Positive adjusted EBITDA should be higher compared with 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 with Q4 2024.

Achieving positive free cash flow

The company views the target of positive free cash flow 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.

Conference call

Aurora Cannabis will host a conference call today, Thursday, June 20, 2024, to discuss these results. Mr. Martin, and Simona King, chief financial officer, will host the call starting at 8 a.m. Eastern Time or 6 a.m. Mountain Time. A question-and-answer session will follow management's presentation.

Date:  Thursday, June 20, 2024

Time:  8 a.m. Eastern Time or 6 a.m. Mountain Time

A webcast will be available.

About Aurora Cannabis Inc.

Aurora Cannabis is opening the world to cannabis, serving both the medical and consumer markets across Canada, Europe, Australia and South America. Headquartered in Edmonton, Alta., Aurora Cannabis 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 Cannabis 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 Cannabis's brands continue to break through as industry leaders in the medical, wellness and adult recreational markets wherever they are launched.

Aurora Cannabis's common shares trade on the Nasdaq and the Toronto Stock Exchange under the symbol ACB.

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