Aurora Cannabis Inc (NYSE:ACB) Q3 2019 Earnings Conference Call - Final Transcript

May 15, 2019 • 10:30 am ET


Aurora Cannabis Inc (NYSE:ACB) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning, everyone. Welcome to the Aurora Cannabis Third Quarter Fiscal 2019 Conference Call for the three months ending March 31st, 2019. During today's call, Aurora will be referring to an earnings presentation, which listeners are encouraged to download from the Financial Reports section of the Company's investor website,

Listeners are reminded that certain matters discussed in today's conference call or answers that may be given to questions asked, could constitute forward-looking statements that are subject to the risks and uncertainties relating to Aurora's future, financial or business performance. Actual results could differ materially from those anticipated in these forward-looking statements. The risk factors that may affect results are detailed in Aurora's annual information form and other periodic filings and registration statements. These documents may be accessed via SEDAR and EDGAR databases. I would like to remind everyone that this call is being recorded today, Wednesday, May 15th, 2019.

I would now like to introduce Mr. Cam Battley, Chief Corporate Officer of Aurora Cannabis. Please go ahead, Mr. Battley.

Cam Battley

Thank you, Chris. Good morning, everyone, and thank you for joining today's conference call. It's a beautiful sunny day in New York. With me are Terry Booth, our Chief Executive Officer; Glen Ibbott, our Chief Financial Officer; and our Executive Chairman, Michael Singer.

For today's call, I'll start by discussing some of our operational highlights for the past quarter and then Glen will discuss the financials. I'll then briefly return to present our outlook for the rest of the year and beyond. And then we'll take your questions.

As we do each quarter, I'm going to start with a few ad-hoc observations to frame the conversation, then proceed to the formal comments. Now our operator, Chris, mentioned that a short earnings call presentation is now available in the financial section of our investor website,

And I'd like to draw your attention to something new we've developed on slide three. It's a dashboard of key performance indicators. They really tell the story of our solid performance during the quarter. But more importantly, they make it very clear, where we're headed, including our path to profitability. So for those of you who can see it, and even for those who don't, I'm just going to run through it very quickly nine of these key performance indicators that we brought together to simplify and clarify the snapshot of where we are. And they include some very important results for us in the quarter, including growth across all distribution channels. So our consumer cannabis revenue in Canada up 37%, our medical cannabis revenue in Canada up 8%, and our international medical cannabis revenue up 38%. And that all average out to 20% quarter-over-quarter growth.

On the next line, you'll see our cash cost to produce per gram came down significantly from CAD1.92 to CAD1.42. So that's down 26%. We knew this was coming. We knew that that would result from the scale, efficiency and technology of Aurora Sky, but it's very gratifying to see.