Aurora Cannabis (ACB 2.21%) 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.
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.