Aurora Cannabis Posts 9% Gain in Fiscal Q2 Net Revenue

Aurora Cannabis Inc. posted a 9% year-over-year rise in fiscal second-quarter net revenue, while adjusted net income dropped as higher expenses and unfavorable currency moves pressured results.

Net revenue reached C$86 million for the quarter ended Sept. 30, compared with C$78.8 million a year earlier. Adjusted net income, a non-GAAP measure, was C$3.1 million, down from C$12 million. Such measures are not recognized or defined under International Financial Reporting Standards (IFRS). The net loss from continuing operations narrowed to C$21.1 million from C$27.2 million. All amounts are in Canadian dollars.

International medical cannabis revenue rose 44% to C$61.4 million, with higher sales in Germany and Poland tied to increased patient demand. Canadian medical cannabis revenue fell 24% to C$21.2 million, mainly because of changes to the federal reimbursement program. Consumer cannabis revenue declined to C$1.6 million from C$6.9 million as Aurora winds down that business.

The C$8.9 million decrease in adjusted net income primarily reflected a C$2.5 million increase in adjusted selling, general and administrative (SG&A) expenses. A C$1.1 million increase in adjusted gross profit before fair value adjustments partly offset the decline. Unfavorable foreign exchange movements of C$4.7 million and a C$0.8 million drop in interest and other income also affected the result.