Aurora Cannabis (ACB)

Ananth Krishnan IR
Miguel Martin CEO
Glen Ibbott CFO
Vivien Azer Cowen
Michael Lavery Piper Sandler
Pablo Zuanic Cantor Fitzgerald
Andrew Carter Stifel
Andrew Bond Jefferies
Matt Bottomley Canaccord Genuity
Frederico Gomes ATB Capital Markets
John Zamparo CIBC
Tamy Chen BMO Capital Markets
Call transcript
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Greetings. Welcome to the Aurora Cannabis Inc. Fourth Quarter 2022 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. this being note, Please Instructions] conference recorded. is [Operator conference your host, will now Krishnan. to the turn I Ananth over

You may begin.

Ananth Krishnan

and and are, Thank you, this Martin, the me us Aurora announcing issued all you CFO. a CEO; market quarter IR year statements SEDAR Miguel financial fourth news closed, operator, will be website and MD&A afternoon. we accessed and can EDGAR. available This be news Today XXXX fiscal appreciate our Glen After results. and Ibbott, full our on and release also financial release, accompanying joining with via

results a In uncertainties Annual addition, on those you information could forward-looking detailed related financial documents or to statements SEDAR accessed that via Actual our will risk reminded factors in results Form forward-looking and may matters and constitute EDGAR. similarly find IR statements. be statements. are Information website. in our discussed filings and The these future are differ that affect periodic registration are could certain performance. actual supplemental Listeners business from subject that and on our may risks call anticipated conference materially today’s These deck other to

Miguel. Miguel that, session I we to will turn We With and please remarks conduct call a and ahead. will Miguel, then to question-and-answer go question one Following prepared that you the the in for please. queue by analysts. covering yourself our Glen, ask limit get over back the

Miguel Martin

Thank you, Ananth.

ornamental is America. revenue becoming position they growth first consistently suppliers underscores of who disciplined needs of and latest capital global cannabis. the vision in of largest Bevo, a in vegetables and approach in demonstrated a begin of immediate both second, foremost over a a consistent and existing controlling have one team embark and XX retain discussing with have brief will discussion the a Collectively, plan. Before past management more our be acquisition, and as plants of agricultural ownership on This our decade. by experience, broadly, equity allocation; business growth a me North with managed leader they let the its earnings to our over transaction in propagated years Bevo interest and substantial robust

As the we profitable Sky while greatly to will to Bevo’s selling EBITDA, is announced the vegetable XXXX. importantly XX, costs. enable us approximately facility, have EBITDA, part tangible capability transaction, immediately and range This of another to investment. United and propagation profitability production the will It repurpose a cultivation minimal opportunity run of shipping also $X the States. annual basis identified transaction a Canada and on saving orchid previously by and EBITDA capital revenue incremental Aurora in extended with and on generate December wind-down our rate goal adjusted and of is adjusted towards The accretive adjusted Aurora, step adding increase million

pleased run. our drive Bevo value are to and investment long our expect We the over have shareholder partner to significant as

good Beyond position about market. we the the our acquisition, very in feel

over international medical Germany, cannabis gross adjusted with in stable global where progress year cannabis increased margins cannabis medical that times is is by our number consistently And in business revenues in exceed the is XX% both UK Canadian Medical Canadian the business consumer while one fiscal business and segment saw XX%, this as that our LP. invest and commence best our and of turbulent X inherent the strength remain optimism on times we Our to cannabis. Poland, of steady, amiable Australia. defensive based notable the remains

the rationalizing current business we to to continue our the is reason The second for our environment. enthusiasm excel

our cash and our annualized cost quarters; EBITDA once within $XXX get materially the closer and million to million will As be needs next completed reduce us two savings you know, breakeven. $XXX complete, to of will

Our balance during result million debt which us enabled in sheet in repurchase will $XXX has is key convertible costs. and cash QX, interest to differentiator considerable a also savings on

of cash the approximately cannabis yesterday, makes which of have million handful companies as have within only net Aurora we a Additionally, of industry one a position. $XXX in to cash

we about is our science, Finally, feel off. pay investment beginning which in great to

Specifically, improvement to these program yields our margin licensed high product through proprietary producers. since other license has expected breeding to is and June delivered generate XXXX, new incremental to our agreements genetic for pipelines nine innovations delivered cultivars through revenue of meaningful

we LP that fact, excited our more signed In license a QX, to first and expect follow. I’m announce to during Canadian we to to major agreement genetics,

a medical our deeper So, let’s dive global into take cannabis business.

was medical year capabilities compliance XX% to science position. protocols, revenue supported leadership our testing our During QX, expertise, and compared as last international up regulatory

and contributions certainly as countries for timing flow we one insulation Israel climate and in relative position. new doubled specific outside develop across our maintained dozen these Australia. including nearly due can share import number markets various it revenue ebb While to to of market and revenues approvals a relates permits, us exposure conditions to individual and nearly Poland, the affords and we In our Canada of countries the as Europe, government economic factors, year-over-year countries believe

extract last flower the population We clinics to new growth we’re our revenues compared patient planned XX% in year, open flower by up. witnessed marketing last in the continue leader invest QX there we and products. to believe over the our in segment. rapid In as continue the see to launch hope market to of increased year, support this efforts and UK new we and UK,

that facility three licenses number two German medical in that Turning one made GMP and same to pharmacies are month. flower our only volume share. medical a of first we EU Germany in with our cannabis to state-of-the-art Recall hold shipment received and Germany, we in XX% May, domestic certification production for

growing new in to the innovation. steadily Our market is market, extract share also product thanks

launched that dronabinol our category. making of we step QX, also During three first sizes into

XXX,XXX in only the largest with medical million EU growth While the with citizens market to during patients. in a the has remains year, cannabis XXX,XXX patients moderated XX Germany about

prices and energy of and we year, that by aware grapples time driven up are backdrop, well growth economic the present this challenges will that hopeful is certainly on Ukraine doctor in the the it impact are is of this some simplified at Germany war facing the We pick with the and even education back reimbursement having process. against fiscal Still, a inflation. as

program. generating We XXXX, expect in where France to supplier only are in the begin in revenues of the flower currently dry we pilot

number our Finally of driven XXX% QX by in Australia, patients. record rose revenue year-over-year,

million in that reiterate the And legalized that will about if alone. are This on far reach Let plans we Canada, now, we countries me could expect so recreational fiscal that recreational X% to of schemes, we several Right Europe similar the have have of patients cannabis population, medical were years. there several and year, most for people. growth adoption center number cannabis a governments levels new adult pool And markets notably medical announced next international to to over Germany. X.X to believe medical online. the story believe expand patient come XXX,XXX the

markets it’s open We be with a believe rec success in cannabis will they a and massive to portable mover So, our significant advantage medical opportunity. leadership first as our up. provides us

to Canadian Turning market. medical the

QX. our of XX% share was comprised XX% in while medical XX% over market leading up sales, domestic patients insured Our from

retaining was offerings certain the direct to shift added leading significantly patients per continues compared participating our was to patients, acquiring, Overall Canada process past same industry infrastructure primarily products compared the Canadian in share We order success along revenue towards results categories, that to that directly but while gain we rec, net value seven from patients our consumer and QX revenue note along the revenue innovations. million premium prior applicable increased and flat in with resources net Their to of offer over to insured to due premium requires The both quarter. patient much to by $X.X per consumer strengthened our higher in experience, Europe. year drive significant have as attribute cannabis of about Our best know-how service is adult approach product and a our in million. to and QX, weeks the through with with margins. $X.X to revenue and QX the in Thrive. increase we our increased class due and Switching new moving

that environment has the continues typical to challenges, believe tiers with cost six were and coming of breeding all scientific well launch. low macro categories. of beginning XX% advantage stabilization, and we of prolonged that entering production generating SKU should SKU and signs market rec and and Canadian months the see a we the quarters. alone, in seen lifecycle, profitability medical across June value unique consumer drives we margin us to provides and our following through Aurora pipeline higher medical a are the in also of While over lifetime of leadership in on stack maximizing highlight in value broadly, genetics with that have rec importance the by More innovation channels we the its categories. serve and focused XX remain SKUs the cannabis launched our The

improvements has delivered to consumers, and new deliver boost proprietary allow as products top well which in leading bringing new cultivars Our since to as flower our meaningful pipeline product X breeding program they June industry us XXXX, margins. to of yield, quality will

the I so financial that average staple incredible new cultivars of THC. our cultivar our for progress an quickly Farm Gas with we’ve review. made me traditional delivers strategic let to Glen that, nearly XX.X% during the call the now But would like turn over example, our double And For yield does of and at to year. say

we We the are plan. about And the our with optimistic of on feel very track transformation future business.

Glen Ibbott

Good Miguel. afternoon, everyone. you, Thank

among cash convertible the We’re our I’m with been of $XXX.X we time that further reduction the including and QX. strengthened plan, cost also notes, interest. proud cost that a we repurchased to total during balance But and accrued even of it executing sheets that’s one we’ve $XXX.X at in on principal LPs, in strongest million pleased have same Canadian

the and is we yesterday, that million out though during of had sheet executed interest We capital defensive reduction we remaining than The approximately saving debt allocation us that still have As cash important cost notes. balance even cash debt million principal million $X.X and reduction, of smart convertible markets. believe more annually. reduces so decision risk, a is on especially of turbulent C$XXX US$XXX a year maturity far available

prospectus purposes. million million US$XXX.X with a access have under we which US$XXX.X to time-to-time shelf for still continue program, utilize remaining from including available our may to ATM We strategic

capital flow and used working in $XX.X to $XX.X prior the improve restructuring quarter. to million operations continues payments million. includes severance cash Our of $X.X in in QX, QX compared with in million

that’s and by compare we loss to reduced If mostly last closer last a adjusted as the $X.X by sales moving year. QX, about mix. $X.X million increased positive versus million adjusted Company’s our loss have channel target, EBITDA quarter, to driven EBITDA We’re we QX of our by in change our

As expect of mentioned, June Miguel has January I delivered XXXX. our also cadence two-thirds controlling $X Bevo, period a June and Bevo ending for we to roughly contribution to the year from the million EBITDA full stake XX, a business of EBITDA. with seasonal note the deliver annual the that from expected strong should which in positive revenue

as $X to So on QX track million a adjusted included from rate returns and revenue for revenue it. we period. execute cannabis prior overall, QX last net the remains positive quarter. to non-routine $XX.X achieve $XX.X million that’s compared million Aurora provision EBITDA was run

from prior our was contributions modestly, fell mostly cannabis while $XX.X Thrive cannabis rose, due that consumer excluding adjustment, period million. revenue acquisition. to Medical So

address now Canadian in in our bit this business. each and million from of medical stability more So, reflecting me core up QX let was detail. $XXX,XXX $XX.X QX, revenue the of a businesses

more bottom as with of it population insured consistency to compared and business patient cannabis any line. environment traction to to the in provides the economic us our the contributes is margin business substantially certainly nature focus while consumer the Our greater higher segment this beneficial to

temporary our last revenue international versus million, was last but quarter compared key XX% coupled UK. Our to growth and decrease international to XX% was cultivars from and the to ago, that a growth the presence strong decrease due $XX.X Australia, year sequentially. situation high weakened in including euro. of reflected resulted demand markets, of QX The a a quarter limited supply the year Poland increase in with same medical relative Europe, The

the issues through improve quarters. expect these in We to QX, supply to continue but following

prior and global our performed adjusted in slightly generating XX%, represents of leading about only million XX% quarter. sales and our of together, businesses from margins Canadian down the gross in Medical medical Taken $XX.X we well, a exit distinguishes Aurora’s positive revenue our run as our adjusted and segment profit. deliver about QX XX% and rate December adjusted of gross This is us best to from path critical XXXX. competitors XX% to

XX% $XX.X increase Consumer QX XX% revenue represented Canadian $X.X increase to May Thrive’s mainly million cannabis consumer about and our about was a quarter. to The our profit. of revenue starting million revenue the business, last gross of Our and of our consumer addition million, the adjusted QX consumer due relative was of $X.X Xth compared stabilization business. from

cannabis expect Now, a do Ontario consumer and this the liquor with strike exposure as QX. to timelines that being QX BC’s to much being expect some and significant we cannabis distribution labor revenue $X on revenue We to the to distribution our at system million these attack store cyber impact short-term said, events our as profitability. from centers disruptions do in due cannabis not

in R&D, which medical our million in business responsible just of for $XX.X is includes I SG&A, adjusted As about QX. at XX% our profit. gross came mentioned,

$X.X and part related transformation staffing This in June prior significant reductions took plan. million included we million costs cost our $X.X business period employee-related XXXX as restructuring to accruals. in this However, and in restructuring of

excluding $XX.X million. reduction million four level SG&A So, of cannabis the QX business years. in almost lowest QX costs, $XX And for savings full existing meaningful Ultimately, below December realized and drive these we expected is being a to SG&A XXXX. by in to expect was with the this SG&A our

in all which previous compared this EBITDA quarter. QX in average in more generated QX, and to by adjusted yielded loss prices. sales the million together, a mostly lower mix is of consumer change driven net So million of $XX.X pulling sales to revenue This selling an Company’s we $XX.X in XXXX

Looking million cost I an would be fiscal $XX EBITDA, our annualized XXXX, that see to to to QX a expect commitment forward in savings improvement by like will do are but reduction split the in SG&A into them and $XXX primarily we to to adjusted reiterate between driven in QX. sold $XXX under savings reflected SG&A, million. or seeing P&L, inventory for as they of goods are savings. drawn million we either savings as evenly our to down production-related for of These is cost and SG&A occur

we future toward EBITDA to taken, that have operating expected we leverage and a model, provide revenues decisions are the more increase. strong With working agile leaner, is as

capital cannabis intangible $XXX.X impairment of million. also we remaining relating and assets tangible represents non-cash balance QX, Aurora’s most in assets. changes During other and is changes with market recognized charges impairment impairment in borrowing conditions higher and exchange the market rates due was including environment, partially to lower the goodwill, full foreign of This The goodwill to operations the cannabis rates. but importantly, the associated current

Now, finally, just housekeeping a minor item.

XXXX like fiscal are efficiencies. year review in as I’d March three XXst. Our that’s And from there fiscal upcoming certain to are our points include internal have and only three financial These achieve changing -- that we to order staffing cost to my end reiterate. quarters key will year

balance level, by convertible our flow. cash First, than cash is working capital and supported debt sheet balance, reduced ever, and stronger a healthy improving

a targeted critical actions to impact generating advantage will provide businesses positive competitive meet in XXXX. cost for the range December leaner and and a Second, by us we’ve savings well profitability. to And us finally, These sustainable us our that a model growth. reflect with positions on taken have materially bottom-line operating our globally medical and our for future Canada are

for call thanks I’ll Miguel. the And now to interest So, turn back your Aurora. in

Miguel Martin

Thanks Glen.

opportunity given remains better we’re long-term cannabis a to our EBITDA positioned the invest here medical adjusted our out that exit takeaways support today. the business as share of high-margin transformation the just the science have brief balance in is the the business we’re our have and earlier. rec with and another both opportunities, process questions. of that’s the quarter, have segment strengthening in correcting. complete, defensive as will making rate December nature achieve Three, are represents a and nearing our started. that of for plan, Four, margins each industry, internationally. sheet. is is goal positive conclude, program quarter we before than opportunity to so the the four added significant we your in XXXX, while And and of strategic done One, are of market segment formidable smartest we take To passing domestically high behind described pricing. market we our Here growth ever Canadian listed completion and force points It the cannabis the innovation progress data today, Two, we and several recovery run

Thrive made from grow and questions. levels. Aurora, and the our significant then these which can underscores we’ve addition, In to happy in your for few create ability to and months, the acquisitions particularly time be in that shareholder lines please past interest feel M&A, through and We now organically two confident we and we appreciate open your questions. long-term value, Operator, Bevo, take


line our with from Vivien the Thank Cowen. proceed you. Please Azer with Instructions] [Operator question comes first And question. of your

Vivien Azer

familiar staples. to wanted dig FX revenues it with volume in you and in there. there covering experienced which that of least some and a simple it’s volumes, like tandem, the as into very guys the large seems usually was just headwinds, I bit of quarter. as So, move revenue cap on a Maybe dynamics we’re your But dig versus directionally, at -- divergence

wondering I’m considerations price mix to there Thank any call out other if you. please. geographic or mix is So

Miguel Martin


Glen Ibbott

consumer think what saw bit Viv, a we between I and of was mix a medical. change

the from is consumer we particularly correctable. of something producing European at They you’re see addition saw, pricing, process greater average mix. Our it’s driving there the -- the a with are down our then pricing is so, particularly step But consumer ran in cultivar in in of that impact in problems. looking normally it’s we what a if take Germany into stuff, than medical did are the corrected. there production being as a quarter, few They --

than might at. other just terms think what you’re volume. I that, be kind But as looking So, usual in of business it was of that

impact and consumer get volume pricing. from you average So, lower more that through the on right business


question proceed the line Our with Sandler. Michael comes from of next with Lavery your question. Please Piper

Michael Lavery

I a your with the -- any Bevo makes there guess as EBITDA. just or radar, on some are EBITDA M&A? be more. And little it? come you’d the your maybe wanted from target, sense add But, considering take just synergies adjacencies on think is strategy situation thinking add your some I any of help obviously advantage to bit is portfolio also The that related greenhouse and particular of to just just and part understand about one are other more expected you of

Miguel Martin

-- mean a so I bit. Yes. try let little unpack that me to

I think we cannabis, M&A, medical global as sort of of pertains to to cannabis. it our medical live the center is play where

And much probably that to of interest as are been us. things that certain so, reason, of not for have others to interest

position our the U.S. Secondly, on

I it’s given going to FDA options the with would think that’s to going longer. a of I’m have belief cannabis validated. strong been if going federal, a that there. It’s And construct is involved. medical our lot take on medical internationally a be to dominance be -- it’s of one it’s the clearly,

So, benefits thought use we’ve management mix the shareholders. of because diamond are of tax pertains and an big Bevo both medical. We other upside their really attracted a the propagator in and and for to some for it you things than support Sky team incredible fair for really between science, find of that the value, maybe as talked certain has out us clever I growth we and a about more what think maybe absolute ability just rough, to think we and us is take was that important synergies and Thrive if the the rec mix, of of U.S. things a what you liked to take the others. you of out has

like continue Michael, think look that. things patient. We’ve to been I So, at we’ll terribly

us they we’re me portable into cannabis. up, other cannabis, fire are pretty to things chase can someone something to of medical my systems, Glen cases place more and made to we’ve balance we’ve is eloquent was that about the the investments sheet, and so As some if have opinion, there. power think that really of world, to is come around the only got them. maybe we like a and it’s are around been I it’s pay lot connect those infrastructure, interest than But to you balance investments others now going things just maybe in out important sheet, The go It’s a science, after strong that which are that around medical starting make patients, dividends. in those proven understandings investments and not

go. we as steady So,

I think, shape. we’re pretty good

terms In level revenues and part, reality SG&A the we is EBITDA current hold from can the margins flat there. the XX, we can and under get if get you of

QX we’ve to reach progress. may type when And so, that. And and be SG&A of we that we’re while consistent a it. would questions, lot around shown with we’ve of I do that by done some we’ve expect said think, something efficiencies, SG&A have to And other going clearly


Our next Cantor Fitzgerald. question comes from the line of Pablo Zuanic with

Pablo Zuanic

to looking on release says kick-off press in soon legalize legislation, September and I’m the Germany.” Tilray said, regulators release. suppose issue roundtable I I a cannabis Aurora mean, a Miguel, wondering that Xth, well, I draft I’m German with adult-use “Tilray similar issued And when release, saw I will press it at initiates to press

give your may is, I the didn’t you to from your guess, press tell add, it draft in again, some where guys you. a it’s be do part in a allow of and us, initially you. going we very Germany color program. the will imports release seat today surprised, to was whether question, the And stand or Tilray Because mostly if I domestic you lobbying the terms can Thank production? -- just hear B helping potential capabilities, or people your basic the German So, table the ground, about question question issued at on

Miguel Martin

You got it.

that. I my do thing and But not comment on respect is so here they competitors, anybody. they what first for comment what have tremendous on to any I’m is -- the So, I really don’t do. have

In a investment market, the significant terms Germany. German in made of we’ve

leading government in working conversations executives relations, and of alcohol, career good spent think regulators. the my He we a whole what is this line. have and Germany. government on might the straight like be both, with never I’ve in things one having tobacco affairs We they’re

I think, both is business, one to leaders pertains the there’s in cannabis know well a medical you of and about it two is the business. enhancements as going as the we’re the to of very in Germany, written lot on you’ve about, and rec things which medical Germany, legalization as secondly, excited

So, rec expect my which will is of that so the color companies how we what and advantages are in to about those earlier, for go and industries their in they needs and medical have three that being be the the in rec, one government is to said compliant understanding timing thoughtful understanding as our of -- this that The license only done why we business have implementation think industry German that a with Germany. produce would stakeholders considered. medical learnings successful is being facilities the from always order in in very is can business, which about companies way. -- be almost I a

manufacturing. for going the be UN to in-country because that Now path most folks be rec rec of question I and regs think work your specific about because is most are I think should the in-country, in would for position the going way that the just conventions of to for obvious the

more significantly that an there. the be XXX whether is that capacity us But opportunity order than tons tons or clearly, XXX tons three or would of rec in that clearly have. XXX is to Now, number market, service

products medical our rec EU And likely think while production today as from with would that both, say We our our of facility would into allowed an do as have one an most to also facilities. be successfully continues brought competencies. that well it’s to Canadian We Nordic we GMP certification exercise, core be in-country Germany.

to more in understand it. Germany, in I follow So, interest the

my for not is what it think respect straight tell it that but going an will thoughtfully. experienced I seen you rec thoughtful think, line, that companies, other this, we move be And business. around a can people a will when, And be and from what recreational key might the is have a Germany. would the companies regulators It for how but medical and we’ve world always of implements in just in clearly then the have time the I to compliant be predict to go from there at business. it’s expectation be in will I can’t I robust cannabis. advantage will Germany markets medical terms cannabis companies beacon tremendous


the of question Carter comes from next line from Our Andrew Stifel.

Andrew Carter

of Bevo up also acquisition. return, go didn’t it the opportunity and associated achieve well, timeline are on versus the have with you of we this, One. the costs selling returning Site very all will fragmented that if Sky cost this get you to original which it, selling a that certainly second of What do Focusing And -- go of facility repurpose to the cost to versus given the giving Bevo one, that this business, in team if which decision with you Number the to to deeper you that? kind a of rid of space see adds now have then, kind that’s platform a is covering and this kind you experience it? have team to to speed, getting the run an

Miguel Martin

got Andrew. You it,

business, So, first Bevo, a you on and others. it Bevo is and guys so did tremendous cover did

was I didn’t work fallacy think a when it did to that company. connected It’s in just cannabis previous say another that work. to did that construct work. not it Bevo is combination Bevo

assets. and combining Aurora assets We from non-cannabis cannabis Bevo not with are

So, there’s that.

them And items big They lot business, of Canada America have there is the the that is that both both offshore produced produce significant in North the box they in expand of because contracts, Southeast and to U.S. in many Secondly, business. a of And U.S. in and Asia. are tremendous Asia a now Bevo and Canada for opportunity shipping right costs.

not pretend that be excited that, to And to draw going can it that. so, it. tremendous It’s to from in And it manner. propagation. This we’re done not going resources does have particularly And the run has so not a Aurora orchids in expand successfully is or they excellence that is very capital-light there. continue Aurora opportunities about have would since run to team -- down cash

was those to it, Leo key have folks, it So, over run to those key for there and guys and us Andrew are key thrilled and about that. we

the everybody about upside caught pertains tax cannabis too But Bevo in sell it they combination of quickly deal assets. such lot the Sky, the for listen, a been And CapEx the else order beauty, that’s it there don’t can’t But to it presents or Bevo key up to revenue. spent repurposing, there day, tax all I can As is being in always the benefit, way end of very of designation Sky, the better with if get OpEx and sell changes is a thing, of required if not was the that market. by money than the to get on generate pumped-up a this. trying in the that we the at Edmonton want there, is to

we’ll But But advantage as to it it your contributes So, it if And mentioned the that XX dollar. question, the what all better that selling on Glen QX. things than in than does a Bevo have play for business offset make out, more answer mentioned, months the work means Aurora Sky in QX, optionality. I’ve we bit of say in significantly still doesn’t pennies just for for the know, is I exactly to and seasonal our think a X it QX next Bevo.


proceed next with your Andrew line question from Bond the with question. comes our Please Jefferies. And of

Andrew Bond

our Owen the evening, Bond Thank Good for for taking on Andrew Bennett. line question. Hey. you

for between also in us, segment, the market plans exact all XQ UK launch Germany, share I from some give extracts So, but on us more performance discussed you last earnings and like can looking the some markets? other breakout, Poland. to detail call, top in think you on an the key markets Not in international positions Australia,

And So, on in and there to growth how ahead been detail where any broadly, Thank sales XQ? weakness characterize came would more maybe fiscal XQ I have might you. in from where if ‘XX? in just sneak could you relative some

Miguel Martin


it. comment into about those some the and of a markets, Let Glen about get top-line take and international some key I’ll details me of

in remarks, of really it said we prepared operating in as to lot countries. important a our is So, be

operate to right the in got You countries.

still for reason evolving, you what’s We’ve sales of import happened it’s sort don’t. the seen all that you and have a so sales where these that with the Israel. permits have these get sort shipments you regs these whether But bit or lumpy. months these is, And of are months in or

incremental Secondly, and a lot revenue, out really laid a play these broader margins generate of investments over they system. can if are and

Republic, cultivars, on the things So, and to the genetics, are production a of Germany, do Czech the similar on on. in the and system, same same we what Poland, lot same same

Now, of to pieces, models advantage different done different have those distribution have to you we have take and that.

international EU manufacturing, that’s global is we so, packaging, European the stability And medical a whole sort are consistency cannabis, but say or testing, a advantages us. I Western quite company has most that this clearly this markets, growing and segment market force growing sales like we The and been markets, are just piece. the in other And similar, have of fastest the wholesale manufacturer, in regs absolutely of a and a as evolution which piece. is is GMP, there will the whether that

in over you. I’ll Now, terms to that the on turn specifics the Glen, breakouts, country of actual

Glen Ibbott

Yes, thanks.

So, again in mean, of to network UK, dominant Miguel’s the Poland, same But keep Australia. they and ones out for that’s I Germany, countries as kind calling the our point, looks again. we us and like down But and lumpy, as QX Australia look at XX% in instance from then are good QX was the previous definitely come QX, up quarter. I for it’ll

very that’s and barriers need in improve Australia of are that back then country, access, down, they those patient they kind when called that. have to a important And really be because to or that fairly market like is by as as year predictable, they we’ve patient and taking knocked had portfolio, to or two the it’s story for but accessibility, was find part really country So, business the definitely off. most lumpy why seems be a the where and to that our international develop things -- something, it it’s

Germany, in we extract our launch QX late QX. of in terms -- In did in

So important the don’t revenue landscape in but in competitive is in there. Germany, we much part an it see of terms of QX,

now, going. more forward report in that market we our on go as So, we business and piece we’ll is that of how are

I’d are being four Poland, QX. in at UK, Australia, the there’s Germany, five markets again, others But probably medical So least international that or predominant contributing say, right now. for us revenue


Bottomley question comes Our next of Canaccord from Matt Genuity. line with the

Matt Bottomley

for questions two Just me on side the of things. revenue

these First macro on services of the data like. some a the with level sales Aurora subscription sales of to to consumer was just noted look all relative on we divergence respect I in a Canada, there’s point of sales bit think

the had you others. the some of website to maybe or Glen, So, mentioned headwinds OCS some related

to lot If Thanks give that the argument, stays revenue million international wondering $XX question sales little sake just you of your of more current is did considering sufficient And that. QX. I’m the profitability just you us on million those from the flat adjusted targets come So get is sales. is to for color margin on just an to that does EBITDA a your your $XX that related to a guys. in if can second you on

Miguel Martin


Let background. comment can Glen give the and me syndicated then you on obviously data,

One of everybody province at this syndicated largest Quebec. of sales. some in the terms in looks is that our gaps is Quebec of data

underweights And we’re it doing. so, what

an was running. rec LP overall the and I weeks get the what to unfortunately is It did before generally OCS the job hack, think, up referenced about business an unbelievable caused back with for generally They disruption. that happened two of in challenging.

been a as That’s the saw for significant strike up cleaned also of long pretty that BC had We a in period out effect time. well.

there’s obviously, and to you of overall at. pressure the can that money, be places team’s think, lot and sort they’re plus And job. vapes, means tremendous combination some good the compressed margins flower in things can went a retail still concentrates, have you done really where but Thrive premium you we -- a feeling I the to make still of find and focused of stores of particularly that, other

that think, of someone are the starting sort does what look patients be rec in are to out, macro as wash to longer terms a of I and medical there efficiencies comes variety. for in more as of open of and to it some But for items, amount tremendous do is little when we’re So bit be to starting clinicians to well more items, in we this particularly those as premium going issues are have rec. with

to So, the pick of rest up Glen, you want it?

Glen Ibbott

Yes. Thanks very much, Miguel. Yes.

more So would to our to certainly, consumer profitability at the be levels revenue than us get goal. adequate current

If being businesses. medical picking is that of our most you message gross our profit generated -- of up certainly out the

international a QX, little bit of quarter So, our was a and XX% had medical in where that pause. a

quarter were normal, before So, the our coming of out our XX% QX was of say profits gross system. medical

Australia again So, medical good up a and objective picking future. it, next stabilize over businesses. Europe in the it of give on back on for business, really is we profitability to the absolutely But getting launch number of our the and growth term growth as see to goal plan Canadian to short the get is in pad quarters, footing the our


comes Our ATB of Markets. Gomes next from question Frederico Capital with the line

Frederico Gomes

other markets, increased So, the to different on several namely just some international companies exporting some in LPs seeing international are Israel, competition markets. we side, and

in compete you and Germany main So, pressure what international? do sort Are coming? And you in competition to you advantages have about how like you Poland? markets, your see seeing can margin any of that talk

Miguel Martin


we’ve they significant I’ve production. in listen, Israel is have key And that obviously amount So, advantages. for lot spent Israel market in lot folks. Israel about has a clearly a and a of time a is talked of local of The challenges

think of have about because respect because for talks guidance not type of the So, one. always -- bit not What markets And in got little of certification advantages. Israel. not is on But But Canadian the a point, overall. of hard -- tremendous of amount of XX% has it. about the get of big give significant of when had a a on now, around we’ve other which their know there to have Israel. that process, shipment, whatnot. only haven’t you stability said are lot U.S. the margin order to to an fighting a is forever lot that. a don’t evolving XX-month is situation. forward-looking sort about Germany, that’s into. these the and and including we to. that a permits get seen I’m difficult to be going work potency the a a internationally rec there’s to that, to of and any And is haven’t because Overall I qualify X process margin can in really the focus that a size people right And I’ve we seen a on growers bit standard or business and a very people to even variance that compression The do and everybody the it’s local let Israel import in a in the you’ve are in of we setup, medical that have shipment we’re we your lab, been cultivar. testing the as compression for which

there’s The they movements massive it’s a something find rec top ours unlike a you And where first other clearly don’t piece product, keep to of business. see consistency you this like, out share stuff advantage quite can that competitive market. they is SKUs, the that companies whether between there’s the Once fact that see or mover patients in stock the of are rolled clearly sticky. medical and in are medical those advantage,

making seeing sales. So international most cannabis, companies markets of lion companies, the possibly four you’re share in maybe five up

As we’ve overall rec example of five Canadian as than all third about, the of talked an less a companies top do business.

these big clinical go Germany business be to long of I lion’s for you partnership with so, a has research, time that such see to business them. think forward three still one international you’re getting share systems advent the with of as most clinicians, the in be And think Aurora bigger, the sticky. And the markets, proven or as expect going will we four like to markets companies of and things I do


Please question next John Zamparo of comes CIBC. from your Our with proceed line the question. with

John Zamparo

then is, you further narrowed away to should Thanks. Sky, the over segments, trying was outside the used or back is point? But what Bevo diversify expansive broad, to it the company Good evening. I down optimize at And decision the we Bevo And we pretty wanted with time, multiple from business strategy this to be core as of about view to business do want what think this the if of purely to Bevo. a be was. cannabis. get to as certainly Aurora cannabis wondering pure evolution I’m

Miguel Martin

think, week. this we about -- John, sorry, and talked know folks and I you I your I missed

leader some I two in think a profitability that is been Everything Bevo. we In pursuit underpinnings is us strengthening cannabis. cannabis. things One do Bevo how be we medical that on. Sky. secondly is in Here’s would to reasons. about was focused are global innately being will that, is about have advantage of do that global we leadership One to that to medical there a interesting an and about order think core couple of for really

was revenue a tax it amount the so, to And of the us. ability there, produce for significant quickly, option to of the use without CapEx, predictable, Sky, very profitable important

efficiencies. synergies are there Secondly, and

in this done into the been it’s not it’s in it And propagation really haven’t them while not of has way. We in interesting Canada. and yet cannabis. gotten to in we U.S., are always play done But sort do disruptive a going

the the things propagation, at excellence system look of agriculture, out so, see do we or Aurora play be around And and general years additive. it, around XX as of that additive. a sort Bevo there as will will be things that of science, And plus we system come will it’s the

don’t want pretty do team, I our I’m on interested this good get lot shareholders skis different standpoint both produces additive of light things adjacency, us. if to over to too and my going a a in mission, science be Now, And pudding thematically, lot we’re that. of I deal and proud and much strength a for don’t this for a staying the really particularly assets, it. of in is think proof’s concept financially to there overall a of are from the -- to and is but for great a CapEx there is I I use are that really profitable, in our of But, But good value believe close the core. reasons,

see. we’ll So,


BMO Please And Markets. your our last the comes Capital of with with question. question line proceed Tamy from Chen

Tamy Chen

business, whatever me size squeezing is it science the do to the good, like question science business? just I’m in. grow the for for genetics own for and R&D within genetics. that see and that of your do very-focused was part curious, business, I last your or expand? it’s just Like, come the that And you medical Like, that I particular you are that is, whether area fit licensing is have wondering the yourselves see? Thank question why you Miguel, don’t guess, I your out Thanks do Aurora on you consumer how of innovation of keep side, own just want you. on of Hi. the an particularly aspect overall the this you’re My this that what’s opportunity segment?

Miguel Martin

welcome. very You’re

we’re on to something it genetic don’t may is it connected but Aurora one I it want it say of this. the may to on. effort amount So, facilities of be, and the is, cannabis an And has time largest world. focused be spent in inordinate

variety on. going being cultivars the uniqueness different cultivars, the levels. that around There’s some historical potency, terp changes chasing mildew. as on of and just totally to Farm yield work things there per of than square things twice, are are types footprint Xx our Plant meter all of pertains powdery like I done and that Gas say advantages, incredible that, so, is and not And it significant health, referenced yield,

there are of when are there. participating there’s And on markets. a doing so, from that branded are a as all scale, we’re don’t participating it companies not I items, are what them. No, categories, standpoint those manufacturing they think in seen and their they’re really agricultural genetics, with familiar at and but And space that global view that we selling not you conflict. I’ve look a one’s today a also is their science, other that

the rec We share in have X about business. a

enough Canadian order the sell we and business. domestically We share pipeline, our have both that. well in And in to a medical serve XX as assets have internationally as

other and are are And some that other not deals such soybean and were some licensing overly our of around of things innovative because and you honest see in them And be very to creative. tomatoes vegetables categories as and partnerships. these of

or are a And doing this. and be a Canadian up. class the They excited in while can part last work, you I and X there not XX there is particularly LPs your order something and of some in LPs this, process training said, done there. This from haven’t world so, just gap about The to start huge breeding year and like in fingers genetics. snap genetics this, we’re and it’s accessing is

means you about those And excited And stuff that us. so, of market. some we’re in for it see of -- the what some

And and We’re is it streams. going rec have generating what we’ve for the market hope also been of business. about our we’re do where XX a sell having as internationally Because of my to sell excited past not of it being the And it’s unlike to evolves, shares, be reality from revenue massive businesses as these share well. so we’ll to genetics there’s this means, plenty place stuff able -- some it. able to

those in science a the huge only not play. that sort accounted I we innovations. upside spend already in there’s incredible accessing And of great genetics Almost for entirety is think and but it’s think us, of others those for. for So,


Miguel over I’ll for the Martin We to of closing end turn question-and-answer call reached session. have the remarks. back the

Miguel Martin

interest. I everybody’s Listen, appreciate

those do on of the in we’ve come markets and upside. done company of terms successful that that efficiencies absolutely cost we We’ve these I to I And a think then track. of said. as it’s first mentioned on understand, is And cannabis is medical and will position. rec, we’ve But the we the Aurora continue line, areas been plan straight the and an do line. Our see great a business a regulations in focused on as is is progression not profitable. what with And

to families, And And appreciate everybody. So forward from your forward. there. best. you support. we move wish We look the sharing we appreciate go to we our and all as we’ll Thanks interest. your all progress Best your


may this at for lines time. your you and conference, today’s concludes this your Thank participation. And you disconnect