Aurora Cannabis Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Matt Bottomley - Canaccord Genuity Limited - Analyst : Good morning, everyone. I guess my question then we can keep it maybe more general to any markets where this is specific, but I'm just curious on the international front, what you can see that's actually trackable right now and the visibility you have of potentially had increased cadence on revenues. I know there's typically some variability there, but I'm most interested in Germany and some of the narrative around doctors maybe more willing or able to prescribe cannabis now. And if there's anything that's been tangible that can be seen. So it doesn't really necessarily just have to be Germany, but any commentary on international markets and what you can see with respect to traction being gained that might be tangible in your results in several quarters from now?

Question: Matt Bottomley - Canaccord Genuity Limited - Analyst : No, that's great. I appreciate that. I know it's something that from a lot of US operators, there's a lot of data that you can subscribe to it there. So I'm just curious, as international becomes irrelevant now, just to sort of keep an eye on those things. I appreciate it. And I just wanted to ask one more quick one more of a housekeeping. Apologize if this was kind of in the prepared remarks already. But if you look at the difference from the profitability and I understand the comments on the cash flow, but from your adjusted EBITDA contribution, REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 20, 2024 / 12:00PM, ACB.TO - Q4 2024 Aurora Cannabis Inc Earnings Call everything on a sequential basis was largely flat except Bevo, it's slightly up. So can you just maybe give me a little more color on what the drivers was for the slight sequential downtick in the adjusted EBITDA in absolute dollars?

Question: Matt Bottomley - Canaccord Genuity Limited - Analyst : Okay. Got it. Appreciate all that. Thank you.

Question: Eric Livshits - ATB Capital Markets Inc. - Analyst : Hi, good morning. This is Eric Livshits for Frederico Gomez and thank you for taking my questions. So just on that front, on the SG&A front, obviously it ticked higher this quarter due to those integration costs related to MedReleaf. I'm just wondering if you could provide just some more insight into the nature of these costs and when you would expect SG&A to normalize? Thank you.

Question: Eric Livshits - ATB Capital Markets Inc. - Analyst : Great. Thank you. I'll hop back in the queue.

Question: John Zamparo - CIBC Capital Markets - Analyst : Thank you. Good morning. I wanted to follow up on Australia and just want to better understand you're the start to that market. With MedReleaf Australia, the contribution in the quarter from that deal, I think was just under $3 million. That seems to imply around $20 million annually. I understand that's a pretty small sample size, but it's also meaningfully below the 23' results. So is there anything you can call out on that and you still expect that business to contribute to what it did previously?

Question: John Zamparo - CIBC Capital Markets - Analyst : No, that's helpful. Thank you.

Question: Pablo Zuanic - Zuanic & Associates - Analyst : Very good morning, everyone. Let me just stay with the Germany. I understand the color you gave in terms of the lack of data, but back in April had been seeing diminishing the conference, some operators there were talking about sales doubling for them, right, in terms of shipments to pharmacies. So you are vertically integrated in Germany. You have local manufacture also import from Canada. You have your own wholesale distribution and then, of course, you also have your sales organization, right? So you probably have good visibility in terms of what you're sending to a pharmacy market. So at least if you can quantify or give some color another wave in the middle of June in terms of whether have you seen volumes double or triple or are pretty flat? That's the first question. And the second part, which is really related to that, just talk about any issues from a demand or supply perspective and what I mean by that on the supply side, are there bottlenecks, right? We are hearing that pharmacies cannot cope with a large number of scripts. So talk about any supply-side bottlenecks. And on the demand side, help me reconcile the ratios we are looking in the US versus Germany, right ? In the US, Pennsylvania, Florida, up 3.5% to 4% of population in the medical program. In Germany, the numbers are not exact, but we calculate 0.3%, right? So sometimes we say, well, the market could go 10 times. But the reality is it's very different for the doctor, even in Germany with a change in the narcotic law to write an Rx prescription versus what we call in the US a recommendation, right ? So from a demand perspective, just help us understand what's the real comparison, if we lose 0.3% Germany versus 3.5% in the US, is that the right comparison when we tried to assess demand? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 20, 2024 / 12:00PM, ACB.TO - Q4 2024 Aurora Cannabis Inc Earnings Call Thank you and others a lot, thanks.

Question: Pablo Zuanic - Zuanic & Associates - Analyst : Thank you. That's great color. And I just have a quick follow up I mean, when you look at the rescheduling process in the US, how could I order benefit or participate in that market we see rescheduling or you don't really see it if it's on legalized at the federal level? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 20, 2024 / 12:00PM, ACB.TO - Q4 2024 Aurora Cannabis Inc Earnings Call Thanks.

Question: Pablo Zuanic - Zuanic & Associates - Analyst : Thank you.