Aurora Cannabis (NYSE: ACB) reported Q1 revenue for the quarter came in at $75.25 million.

• Reports Industry Leading Gross Profit of $53.7 Million and 58% Cannabis Gross Margin
• Delivers Best-in-Class Indoor Cash Cost to Produce of $0.85 per gram
• Announces Plan to Settle March 2020 5.0% Convertible Debentures
• Revises Capital Expenditure Plan to Align with Long-Term Market Growth
• Generates Total Revenue of $75.6 Million Including Medical and Consumer Cannabis Net Revenue of $60.5 Million, and Wholesale Cannabis Net Revenues of $10.3 Million

"Over the past several years, Aurora has earned its place as a global leader in the cannabis industry. Despite short term distribution and regulatory headwinds in Canada that have temporarily impacted the industry, the long-term opportunity for Aurora in the global cannabis and cannabinoids market is immense," said Terry Booth, CEO, Aurora Cannabis. "Aurora has, and will continue to focus on everything in our control. Our success in doing this was demonstrated again this quarter by continued strong improvement in our core KPIs. We delivered solid operating results this quarter, exemplified by our industry-leading cash cost to produce which declined another 25% to $0.85 per gram this quarter, as well as by our industry-leading gross margins and market share."

Mr. Booth added, "In order to capitalize on this global market, we recognize the need to be nimble and proactive. To enhance our financial flexibility and position us to take maximum advantage of future growth opportunities, we have also taken decisive steps to immediately strengthen our balance sheet. Specifically, these steps include: (1) the announcement of a formal plan to settle our 5.0% convertible debentures due March 2020, (2) a reduction in our capital investments over the next several quarters by over $190 million to better match near-term capacity expansion with anticipated demand, while maintaining our long-term demand outlook, and (3) raising over US$124 million in gross equity proceeds since the start of fiscal 2020 through our at-the-market ("ATM") financing program."

First Quarter 2020 Highlights

(Unless otherwise stated, comparisons are made between Fiscal Q1 2020 and Q4 2019 results and are in Canadian dollars)

• Cash cost to produce per gram sold declined 25% sequentially to $0.85 per gram, delivering on the Company's promised sub one dollar per gram target KPI
• Net cannabis revenue of $70.8 million compared to $94.6 million in Q4 2019;
  • Non-wholesale cannabis revenue declined 19% sequentially, comprised of:
    • Medical cannabis revenue of $30.5 million, an increase of 3% sequentially
    • Canadian consumer cannabis revenue of $30.0 million, a decline of 33% sequentially as provincial ordering slowed considerably during the summer as distributors worked through inventories and as the industry was impacted by the slow pace of retail store licensing
  • Wholesale revenues of $10.3 million, at 58% gross margin
• Production volume increased 43% sequentially to 41,436 kgs
• Total gross profit of $53.7 million and gross margin on cannabis net revenue of 58%, driven by a significant reduction in cash cost of production
• Aurora's medical patient base expanded 8% to 91,116 sequentially. As at the date of this release, Aurora has approximately 91,408 active registered patients
• Closed an amended and upsized $360 million secured credit facility which includes an accordion feature that enables Aurora to upsize the facility by approximately $40 million. As at the date of this release, approximately $160 million of this facility has not been drawn and remains available to Aurora
• Sold remaining 28.8 million shares of The Green Organic Dutchman Holdings Ltd. for gross proceeds of $86.5 million

For earnings history and earnings-related data on Aurora Cannabis (ACB) click here.