In This Article:
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Net Revenue: $81.1 million, a 29% growth.
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Medical Cannabis Revenue: $61.3 million, 41% increase.
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International Medical Cannabis Revenue Growth: 93% increase.
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Adjusted Gross Margin: 54%, up 300 basis points from last year.
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Adjusted EBITDA: $10.1 million, a 210% increase.
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Cash and Cash Equivalents: Approximately $152 million, with no debt in cannabis operations.
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Consumer Cannabis Revenue: $10.4 million, down from $12 million.
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Plant Propagation Revenue: $8.6 million, up from $7.2 million.
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Adjusted SG&A: $31.7 million, up from $27.7 million.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aurora Cannabis Inc (NASDAQ:ACB) reported a 29% increase in net revenue, with global medical cannabis revenue growing by 41% year-over-year.
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The company achieved record adjusted EBITDA, marking its eighth consecutive quarter of positive adjusted EBITDA.
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International medical cannabis revenue increased by 93%, with high-margin international revenue surpassing Canadian medical cannabis revenue for the first time.
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Aurora Cannabis Inc (NASDAQ:ACB) maintained a strong balance sheet with approximately $152 million in cash and cash equivalents and no debt in its cannabis business.
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The company expanded its product offerings in Australia, contributing to increased sales and market presence.
Negative Points
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Consumer cannabis net revenue declined to $10.4 million from $12 million in the previous year, reflecting a strategic focus on higher-margin international business.
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Adjusted gross margin in consumer cannabis decreased to 14% from 27% due to a shift in product sales.
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The plant propagation segment experienced a decrease in adjusted gross margin to 19% from 22%, attributed to seasonal fluctuations and ramp-up costs.
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The company faces regulatory hurdles in international markets, which can impact the timing and consistency of shipments.
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Aurora Cannabis Inc (NASDAQ:ACB) continues to operate in a challenging Canadian recreational cannabis market with lower margins and regulatory complexities.
Q & A Highlights
Q: Can you comment on the sustainability of the revenue growth in global medical cannabis sales, given the volatility due to shipment timings? A: Miguel Martin, CEO, stated that the current sales levels are sustainable and expected to grow. He acknowledged that shipments can be lumpy due to factors like permitting processes, but the breadth of their model across multiple markets helps smooth out these fluctuations. Simona King, CFO, added that this quarter included the full revenue from their Australian business post-acquisition, contributing to growth.