Aurora Cannabis (ACB -6.81%) unveiled its fiscal third-quarter financial results after the market closed on Thursday, reporting net revenue growth of 15.9% year over year to 75.5 million Canadian dollars and a net loss of 137.4 million Canadian dollars.
In February, the marijuana company announced a major restructuring to reduce costs and accelerate its pathway to profitability, which translated into improved financial performance in the third quarter.
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The company benefited from increasing marijuana sales in both the medical and recreational markets during the period.
Canadian medical marijuana net revenue increased to CA$27.0 million from CA$25.6 million in the previous quarter, despite a 4% decrease in active registered patients. International medical marijuana net revenue jumped 125% sequentially to $4 million as sales resumed in Germany. On the recreational front, consumer net revenue improved 68% from fiscal Q2 to CA$38.6 million in fiscal Q3 thanks to volume growth, the launch of Aurora's value-oriented brand, and the roll-out of Cannabis 2.0 products such as vaporizers in December.
On the bottom line, selling, general, and administrative expenses totaled CA$80.1 million, down CA$19.7 million from CA$99.9 million in fiscal Q2. That decline came as a result of the company's restructuring plan, which included a headcount reduction and lower capital expenditures.
Looking forward, Aurora is entering its fiscal fourth quarter with an SG&A run rate of roughly CA$60 million, including research and development costs; management expects that SG&A run rate to fall below CA$45 million by the time it's exiting its fiscal Q4. The expected decline in expenses has management targeting positive adjusted EBITDA in fiscal Q1 2021.
