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Aurora Cannabis Stock Falls Amid Losses In Q3, Announces Transfer To Nasdaq

May 14, 2021 7:25 am
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Aurora Cannabis Stock Falls Amid Losses In Q3, Announces Transfer To Nasdaq

Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB) stock plunged after hours Thursday when the company reported a drop in recreational cannabis revenue, missing estimates.

The Edmonton, Alberta-based cannabis company revealed a 19.5% year-over-year and 17% sequential decline in revenue to CA$58.4 million ($48.1 million), before provisions, in the third quarter of 2021.

Aurora also posted a negative adjusted EBITDA of CA$24 million, versus a CA$49.6 million loss in the same quarter of 2020.

In addition, the company reported a CA$164.7 million net loss from operations, compared to CA$133.5 million in the corresponding period of last year.

Aurora revealed a quarterly loss of 24 cents per share compared to the Zacks Consensus Estimate of 17 cents loss.

Medical cannabis net revenue increased by 17% year-over-year, reaching CA$36.4 million – reflecting the shift to Aurora’s medical business – including CA$26.9 million in domestic and CA$9.4 million in international medical net revenue.

During the quarter, the average net selling price per gram of dried cannabis rose to CA$5 per gram from CA$4.64 in the corresponding quarter of last year and CA$4.45 in the prior period.

“We delivered the strongest performance in domestic medical and the best results in international medical cannabis of any Canadian LP during the period,” Miguel Martin, CEO of Aurora Cannabis, said.

Other highlights from the company’s third-quarter report include:

  • Adjusted gross margin before fair value adjustments on cannabis net revenue was 44%.
  • Consumer cannabis net revenue amounted to CA$18 million, (CA$21.3 million excluding provisions), representing a year-over-year decline of 53%.
  • Adjusted gross margin before fair value adjustments on consumer cannabis net revenue was 21%.
  • Selling, general, and administrative expenses totaled CA$45.1 million (CA$41.9 million), excluding restructuring costs, down by 42% year-over-year.
  • As of May 12, the company had roughly CA$525 million in cash.

Business Transformation Plan, Debut On NASDAQ And New Appointments

After a rocky year, the Canadian cannabis producer continued with the execution of its Business Transformation Plan launched in February 2020.

Aurora Cannabis intends to accelerate CA$60 million to CA$80 million in annualized cost efficiencies, including CA$40 million – CA$60 million in costs of goods sold and roughly CA$20 million in selling, general and administrative expenses.

Following the market close on May 24, Aurora will transfer to the Nasdaq Global Select Market from the New York Stock Exchange. 

The company also tapped Ronald Funk, lead independent director and a PG expert, to serve as chairman, replacing Michael Singer, who will continue to serve as a board member.

In addition, Alex Miller opted to join the company’s leadership team as executive vice president of the supply chain. Lori Schick followed suit, agreeing to assume the role of executive vice president of human resources.

ACB Price Action: Aurora Cannabis shares were trading 8.74% lower at $6.68 at last check Friday.

Photo Source: CNW Group/Aurora Cannabis Inc.

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