Aurora Cannabis (NASDAQ: ACB) (TSX: ACB) reported its financials for the third quarter of the 2024 fiscal year, showing some positive growth despite a continued decline in consumer cannabis revenue and a climbing net loss.
The Canadian medical cannabis company changed its fiscal year dates, so year-over-year results for the third quarter of the 2024 fiscal year are compared to the second quarter of fiscal year 2023, which ended Dec. 31, 2022.
Aurora posted a rise in net revenue to C$64.4 million from C$61.1 million in the corresponding period of the previous year. The company’s gross profit margin also improved to 50% from 46% in the year-ago quarter, primarily attributed to its medical cannabis operations and its focus on markets with higher margins.
The company’s medical cannabis segment — which it notes delivers 70% of consolidated net revenue — saw $45.1 million, a 16% rise in net revenue, thanks to strong sales in Australia and Europe.
“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,” CEO Miguel Martin said in a statement. “Our international medical net revenue grew 41% year-over-year in (the third quarter), demonstrating Aurora’s ability to meet diverse patient needs in markets across the world.”
While consumer cannabis revenue declined again to C$11.6 million from C$14.6 million due to strategic product allocation, plant propagation revenue wholly derived from the Bevo operations grew, benefiting from seasonal trends.
Cash burn
The company has also been effectively controlling its cash burn, resulting in a reduced net loss of C$25.2 million versus C$62.4 million in the same period last year. Still, that comes after the company reported C$300,000 in net income from continuing operations sequentially.
However, the company’s working capital fell by 27% to C$229 million at the end of 2023 from C$409 million at the end of 2022.
The firm reported an adjusted EBITDA of C$4.3 million for the quarter, marking an increase from C$3 million. Additionally, the company disclosed that its cash reserves exceeded C$200 million at the close of the quarter. The company also noted that its remaining convertible debt, totaling C$7.3 million, is scheduled for full repayment by February.
Looking ahead, Aurora Cannabis set a cautiously optimistic tone for the fourth quarter of 2024. The company anticipates steady revenue in the Canadian market and modest growth in Europe and Australia while also continuing to see positive adjusted EBITDA, supported by revenue growth and ongoing cost management.
MedReleaf Australia
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