Q1 2027 Aurora Cannabis Inc Earnings Call Transcript
Key Points
- International medical cannabis net revenue rose 17% to CAD43 million, driven by strong performance in Germany, with 64% of total net revenue now generated outside of Canada.
- Adjusted gross margin was 58%, at the high end of the expected annual range, supported by strong contributions from international markets.
- The acquisition of Safari Flower Company, with its EU-GMP certified facility, adds critical manufacturing capacity and was accretive to adjusted EBITDA in the first quarter.
- Aurora Cannabis Inc (ACB) maintains a strong balance sheet with nearly CAD150 million in cash and no debt, providing flexibility for strategic investments.
- The company holds leading market share positions in Germany, Poland, and Australia, and is well-positioned to benefit from potential US regulatory changes through partnerships and research collaborations.
- Canadian medical net revenue was negatively impacted by a 30% reduction in federal reimbursement rates, which took effect April 1st, affecting top line and adjusted gross profit.
- Adjusted EBITDA declined to CAD3.4 million from CAD10.8 million in the prior year, primarily due to lower adjusted gross profit before fair value adjustments.
- Free cash flow turned negative, with an outflow of CAD5.8 million compared to an inflow of CAD6.8 million in the prior year.
- Pricing pressure in the German value segment is increasing, and the company expects continued competitive pressure as new entrants join the market.
- The company faces regulatory uncertainty in Germany, with potential legislative changes that could impact the market, though management believes it can navigate these challenges.
Greetings, welcome to the Aurora Cannabis Inc. first quarter 2027 results conference call. All participants will be in a listen-only mode, and a question-and-answer session will follow the formal presentation. This conference call is being recorded today, Wednesday, August 5th, 2026.
I would now like to turn the conference over to your host, Kevin Niland, Director of Strategic Finance and Investor Relations. Please go ahead,
Hello, thank you for joining us. With me are Miguel Martin, Executive Chairman and CEO; and Simona King, CFO. Earlier this morning, we filed our fiscal first quarter 2027 financials for the period ending June 30th, 2026, and issued a news release containing our quarterly results. Our financial statement, MD&A, and news release are available on our IR website and can also be accessed via SEDAR+ and EDGAR. In addition, you will find a supplemental information deck on our IR website.
Please note that we present our financials
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