Aurora shuttering Reliva CBD unit as exports help narrow loss

A significant jump in plant-propagation sales and medical marijuana exports helped Canadian licensed producer Aurora Cannabis narrow its loss in the first quarter of fiscal year 2024 to 28.3 million Canadian dollars ($20 million).

That’s a significant improvement over the previous year’s quarter, when the Edmonton, Alberta-based company reported a CA$618.8 million loss.

Total international medical cannabis revenue jumped 40% to CA$16.2 million in the quarter.

Sales were also aided by Aurora’s agricultural propagation unit.

Net revenue from plant propagation contributed CA$19.9 million to the company’s sales and represents the highest quarterly revenue for the Bevo Agtech subsidiary to date.

Aurora acquired Bevo in August 2022.

The Edmonton company attributed Bevo’s strong sales to the seasonality of its business, which delivers up to three-quarters of its revenue in the first half of the calendar year.

Aurora’s medical cannabis net revenue, combined from Canada and overseas, increased 14% from last year to CA$41.2 million in the quarter.

Canadian medical cannabis net revenue for the April-June quarter was CA$25.4 million, up slightly over the same quarter last year.

Aurora attributed some of its growth in Canada to increased sales to insured patient groups.

Revenue generated in the adult-use market inched higher to CA$13.2 million, up slightly over last year’s CA$12.6 million.

Aurora disclosed that its cost savings and revenue growth have put the company on a path to achieving positive free cash flow in calendar year 2024.

Aurora’s shares trade as ACB on the Nasdaq and Toronto Stock Exchange.

Source: https://mjbizdaily.com/aurora-shuttering-reliva-cbd-unit-as-exports-help-narrow-loss/