Aurora Cannabis Inc. ACB ACB, announced its financial and operational results late Tuesday for the first quarter of fiscal 2022, ended September 30, 2021.

First Quarter 2022 Highlights

Medical Cannabis:

• Net revenue was $41.0 million, a 23% increase from the prior-year period. Adjusted gross margin before fair value adjustments on medical cannabis net revenue was 64% compared to 67% sequentially and 56% in the prior-year period.

"During the quarter, total cannabis net revenue increased by approximately 10% sequentially, driven by our industry-leading and high margin global medical cannabis business. Our premiumization strategy also gained traction, as evidenced by 29% sequential revenue growth in our premium dry flower brands of San Rafael '71 and Whistler, primarily driven by the launch of three new Coast cultivars," stated Miguel Martin, CEO of Aurora Cannabis in a press release.

Consumer Segment:

• Net revenue was $19.1 million, relatively steady compared to the prior quarter net revenue of $19.5 million and a 44% decrease from the prior-year period.
• The decrease from the prior year was due primarily to reduced orders from the provinces in Canada, which reflects the impacts of COVID-19 and began impacting the firms’ revenues in Q3 2021.
• Adjusted gross margin before fair value adjustments on consumer cannabis net revenue was 32% versus 30% sequentially and 41% in the prior-year period. The sequential improvement was due to the improved mix of premium flower categories.

Consolidated Results:

• Adjusted gross margin before fair value adjustments on cannabis net revenue was 54% in Q1 2022 versus 53% in the prior quarter and 48% in Q1 2021, due primarily to a shift in sales mix towards the premium flower categories in the adult consumer market and increased sales in the medical markets which command significantly higher average net selling prices and margins.
• Adjusted EBITDA loss improved to $12.1 million in Q1 2022 versus $19.7 million in Q4 2021 and $58.1 million in the prior-year period.
• Q1 2022 total cannabis net revenue was $60.1 million, up 10% sequentially.
• Reflecting the shift in mix toward the company's medical businesses, the Q1 2022 average net selling price per gram of dried cannabis increased to $4.67 per gram from $3.86 in Q1 2021 and down from $5.11 in Q4 2021 due to the country mix in international sales. 
• Selling, general and administrative (SG&A) costs, including research and development (R&D), were $44.0 million, excluding $5.4 million in restructuring, severance, and prior-year bonus accruals, versus $42.6 million in the prior-year quarter.

"Our transformation plan is on track. We continue to strengthen and transform our business while benefiting from broad diversification across our international medical, domestic medical, and adult recreational segments. We have executed over $33 million in annualized cost savings and are positioned to deliver approximately $60 to $80 million,” Martin concluded.

Price Action:

Aurora shares were trading up 2.47% at $7.48 per share at market close on

Tuesday afternoon.

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