Aurora's 4th quarter business revenue for cannabis increases 52% to $ 98.9 million – New Cannabis Ventures

Aurora Cannabis Announces Financial Results for Fourth Quarter and Fiscal Year 2019

• Generates a net business turnover of $ 98.9 million, up 52% ​​from the previous quarter
• Cannabis net income up 61% to $ 94.6 million from the previous quarter
• Reports a gross margin on net cannabis income of 58%

EDMONTON, Sept. 11, 2019 / PRNewswire / – Aurora Cannabis Inc. (the "Company" or "Aurora") (NYSE | TSX: ACB), the Canadian company that defines the future of cannabis in the world, has announced today its financial and operating results for the fourth quarter and the fiscal year ended June 30, 2019.

In 2019, Aurora took its place as a world leader in cannabis production, research, innovation and international market development. We respect all our strategic priorities. Our best growing methods allow us to grow high quality and consistent cannabis on a large scale. That's why we recorded solid revenue growth in the fourth quarter.

Terry Booth, CEO

We are working to expand our reach in the US markets. Our partnership with the UFC is a base for exploring hemp and hemp food products. We are also exploring other opportunities and leveraging our strategic advisor. We focus on creating a sustainable, high-profit business while providing patients and consumers with access to safe and reliable medicines.

Glen Ibbott, CFO, added, "We continue to see strong growth in cannabis revenues in the medical product and consumer categories. The execution of our culture continues to reduce production costs and improve gross margins. Aurora's diversified product portfolio remains in demand for both patients and consumers. With the Canadian launch of derivatives in the coming months, we have made the necessary investments to prepare and focus on a variety of value-added products. We are very excited about providing high quality cannabis and new product forms to an expanded consumer market. "

Highlights of the fourth quarter of 2019

_{(Unless otherwise noted, the results are compared between the fourth quarter of 2019 and the third quarter of 2019 and are in Canadian dollars)}

• Cannabis net proceeds increased 61% sequentially to $ 94.6 million
  • Cannabis use receipts in Canada increased 52% to $ 44.9 million
  • 10% increase in cannabis revenues for medical purposes to $ 29.7 million
  • Wholesale revenue of $ 20.1 million
• Cash costs of production per gram sold decreased 20% sequentially to $ 1.14 per gram in the fourth quarter of 2019.
• Production volume increased 86% sequentially to 29,034 kg.
• Gross profit margin on net cannabis revenues increased from 3% to 58% sequentially.
• Aurora's medical patient base grew 10% to 84,729 sequentially. As of the date of this release, Aurora has approximately 89,700 active enrolled patients, an additional 6% increase.
• The $ 11.7 million loss from Adjusted EBITDA represents a 68% improvement from $ 36.6 million in the third quarter of 2019.

Later events

• Closed a $ 360 million modified and enhanced credit facility with an accordion feature enabling Aurora to expand the facility by approximately $ 40 million,
• Sold its remaining 28,833,334 shares of The Green Organic Dutchman Holdings Ltd ("TGOD"), at a price of $ 3.00 per share, for total gross proceeds of $ 86.5 million, representing a internal rate of return of approximately 50% for the Company.

Highlights of the 2019 financial year

• Net revenues of $ 247.9 million, up 349% over the previous year.
• Gross margin on net cannabis income of 55% for the 2019 fiscal year compared to 65% for the 2018 fiscal year.
• Kilograms produced and kilograms sold of 57,442 kg and 36,628 kg, up 920% and 629% respectively compared to the 2018 fiscal year.

Key financial and operational measures Q4 2019

Consolidated net income increased 52% in the fourth quarter of 2019 to $ 98.9 million from $ 65.1 million in the prior quarter. Cannabis use revenues were $ 44.9 million in the fourth quarter of 2019, an increase of 52% over the previous quarter and contributed 45% of total consolidated net revenues. Net medical cannabis revenues in Canada reached $ 25.2 million in the fourth quarter of 2019, up 9% from the previous quarter. Revenue growth is primarily due to additional production capacity and inventory available for sale from Aurora Sky and Aurora River (Bradford).

The average net selling price of cannabis decreased by US $ 1.08 per gram compared to the previous quarter, from US $ 6.40 in Q3 2019 to US $ 5.32 in Q4 2019. This decrease is mainly attributable to the average price of cannabis. increased sales volumes in the consumer and wholesale markets, generating lower average net selling prices. compared to medical markets.

Net profit margin for cannabis rose to 58% in the fourth quarter of 2019 from 55% in the previous quarter. The improvement in gross margin is explained by the continued decline in the cash cost of production per gram and the increase in gross margins on bulk sales.

In the fourth quarter of 2019, Aurora produced 29,034 kilograms of cannabis, up from 15,590 kilograms in the previous quarter. The 86.2% increase in production is mainly due to the additional production capacity added by the Aurora Sky, River (Bradford) and Ridge (Markham) facilities. Mining capacity increased from 20,400 kilograms to 26,400 kilograms in the fourth quarter of 2019. Following the end of the quarter, Aurora's annual mining capacity increased further to 45,600 kilograms.

Selling and general expenses in the fourth quarter of 2019 increased 9% from the prior quarter to $ 72.9 million. This is mainly due to increased execution and shipping costs related to the growth of cannabis sales and continued investments in sales initiatives, distribution network and partnerships to conduct research, develop products and build brand awareness. Aurora will continue to invest in the infrastructure and talent needed to grow its market share in the global medical and consumer cannabis markets, but will remain extremely focused on its business as effectively as possible.

In the fourth quarter of 2019, adjusted EBITDA was up 68%, from $ 36.6 million in the first quarter to $ 11.7 million. Developing a profitable and robust global cannabis company is extremely important for Aurora. In fiscal 2019, Aurora focused on execution excellence, and the company's key performance indicators demonstrate its success in this regard. In addition, Aurora has corrected the previously identified bottlenecks and continues to see a strong sale of the company's products at the retail level. However, the Canadian consumer network continues to face retail challenges in key markets and the resolution of this problem is beyond the control of the Corporation. Aurora is working closely with all of our regulatory and partner partners to streamline distribution, while the Company continues to pursue positive adjusted EBITDA on a consolidated basis.

The current annualized production capacity of the company's operating facilities exceeds 150,000 kg per year, based on planted rooms. As the industry leader in bespoke culture, Aurora focuses on producing a consistent supply of high quality, low cost products to meet growing market demand. Aurora is well positioned to respond quickly to market conditions with shorter lead times, longer harvest cycles and higher yields.

Perspective; view; vision; horizon

The global cannabis and hemp markets represent a significant opportunity for Aurora and the company will continue to make the necessary investments today to create long-term shareholder value. However, Aurora will take a balanced approach to these investments with a focus on operating a sustainable and profitable business.

The introduction of new product formats in the Canadian consumer market this fall represents an important opportunity for society. Aurora expects a robust product line to be ready for launch in December. Given the very early stage of development of the Canadian consumer market and international medical markets, management anticipates that sales volumes and revenues from one quarter to the next could be volatile. The company expects adjusted EBITDA to continue to improve in the future as a result of anticipated product growth, improved gross margins and improved revenues. prudent growth in selling, administrative and other overhead expenses.

The adoption of the US Farm Bill offers new opportunities in the world's largest cannabis and hemp-based CBD market and, as such, Aurora is committed to creating a substantial operational footprint in the United States. As part of the US market strategy, the company is considering stakeholders and how various national and federal regulations will affect its business prospects. A number of solutions to increase Aurora's presence in the US market are being evaluated and the Company commits to only engaging in activities permitted by federal and federal laws. Management believes that there are currently legal opportunities at the state and federal levels to increase cash flow from operations and to be key pillars of the long-term strategy and success of the Corporation. Aurora.

Conference call

Aurora will hold a teleconference tomorrow, September 12, 2019, to discuss these results. Terry Booth, Managing Director, Glen Ibbott, Chief Financial Officer, Cam Battley, Managing Director, and Michael Singer, Executive Chairman, will host the conference call from 9:00 am Eastern Time. A question and answer session will follow the presentation of the management.

Date: Thursday, September 12, 2019
Time: 9:00 am Eastern Time | 7:00 am mountain time
Webcast: https://bit.ly/34gYCj5
Reading: (416) 849-0833 or (855) 859-2056 until 12:00, Eastern Time on Thursday, September 19, 2019
Reference number 6084057

About Aurora

Headquartered in Edmonton, Alberta, Canada, with a financing capacity exceeding 625,000 kg per year and sales and operations in 25 countries on five continents, Aurora is one of the largest and most important companies in the world. of cannabis in the world. Aurora is vertically integrated and horizontally diversified across all key segments of the value chain, from engineering and facility design to research on cannabis selection and genetics, cannabis production and hemp, derivatives, development of high added value products, home grown, wholesale and retail.

Highly differentiated from its peers, Aurora has implemented a particularly advanced, consistent and efficient production strategy, based on facilities specifically designed to integrate state-of-the-art technologies into all processes, defined by extensive automation and customization, enabling large-scale production of product of constant quality. Designed to be replicated and scalable globally, our production facilities are designed to produce cannabis on a significant scale, with high quality, peak yields and low production costs per gram. Each of Aurora's facilities is built in accordance with the European Union's GMP standards. Certification was awarded at Aurora's first production facility in Mountain View County, at MedReleaf Markham facilities, and at its European medical cannabis distributor, Aurora Deutschland. All Aurora installations are designed and built in accordance with the European GMP standard.

In addition to the Company's rapid organic growth and strong execution of its strategic mergers and acquisitions, which to date include 17 wholly-owned subsidiaries: MedReleaf, CanvasRX, Peloton Pharmaceutical, Aurora Deutschland, Biopharma H2, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia HotHouse Consulting, MED Colombia, Agropro, Borela, ICC Labs, Whistler, Chemi Pharmaceutical and Hempco – Aurora stand out for their reputation as partners and employers of choice in the global cannabis industry, having invested and knotted strategic partnerships with leading innovators, including: Radient Technologies Inc. (TSXV: RTI), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), CTT Pharmaceuticals (OTCC: CTTH), Alcanna Inc. (TSX: CLIQ), High Tide Inc. (CSE : HITI), EnWave Corporation (TSXV: ENW), Capcium Inc. (private), Evio Beauty Group (private) and Wagner Dimas (private).

The common shares of Aurora are traded on the TSX and the NYSE under the symbol "ACB" and are part of the S & P / TSX Composite Index.

For more information on Aurora, please visit our investor website, investor.auroramj.com

Original press release

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