Aurora Cannabis (TSX: ACB) this morning reported net revenue of $64.4 million for its fiscal third quarter of 2024, an improvement over the prior quarter as well as the year ago period.
Growth is said to have come from the firms global medical cannabis business as well as its plant propagation business, while the company reported declining sales in its consumer cannabis segment.
Medical cannabis revenue amounted to $45.1 million, a 16% increase over the year ago period, while consumer cannabis amounted to $11.6 million, a decline of 21% during the quarter. Plant propagation revenue was $7.3 million, a 10% increase.
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Adjusted gross margin before fair value adjustments is said to come in at 50%, an improvement over the 46% reported a year ago, while adjusted SG&A expense increased 12% to $27.5 million.
The company reported a net loss from continuing operations of $25.2 million, an improvement over the $62.4 million loss in the prior year. Adjusted EBITDA meanwhile came in at $4.3 million, compared to $3.0 million previously.
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“Fiscal 2024 is on track to be our strongest to date, driven by the continued strength of our differentiated business model and our focus on profitable global medical cannabis markets. [..] We are now on the cusp of achieving positive adjusted EBITDA1 on an annualized basis for the first time in fiscal 2024, a critical milestone for us, supported by our previously announced goal of realizing $40 million in annualized cost efficiencies by the end of the fiscal year,” commented CEO Miguel Martin on the results.
For the fourth quarter of the year, the company is forecasting modest growth in international markets, while revenue in the Canadian consumer and medical segments are expected to be flat. Aurora is expecting to report continued positive Adjusted EBITDA in the fourth quarter, a result of revenue growth and improved cost control.
The company also expects to close the fourth quarter debt free, following the repurchase of $23.1 million in convertible debentures in Q3, and the remaining $7.3 million to be paid down this month.
Separately, the company this morning also announced that it has acquired the remaining 90% equity interest in MedReleaf Australia for A$50 million. Consideration consisted of A$9.45 million in cash and the remainder was paid out in common shares. MedReleaf Australia is said to be the second largest operator in the medical cannabis market in Australia.
Aurora Cannabis last traded at $0.52 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
