Aurora Cannabis Q4 Loss Narrows, Adj.EBITDA Surges; Sees Sequentially Weak Demand In Q1; Stock Drops

(RTTNews) - Aurora Cannabis Inc. (ACB, ACB.TO), a Canadian medical cannabis company, reported Wednesday narrower net loss in its fourth quarter, and adjusted EBITDA surged from last year with higher revenues.

In the pre-market activity on the Nasdaq, Aurora shares were losing around 10.5 percent to trade at $5.26.

Net loss from continuing operations was $17.23 million, compared to a net loss of $20.327 million for the prior year period.

Adjusted EBITDA increased 619 percent to $16.68 million from $2.32 million a year ago. Consolidated adjusted gross margin before fair value adjustments was 62 percent, compared to 50 percent in the prior year period.

Total net revenue was $90.5 million, 34 percent higher than $67.4 million in the prior year period.

The growth was mainly due to 48 percent increase in global medical cannabis business and 32 percent growth in plant propagation business. These were slightly offset by lower quarterly revenue in consumer cannabis business.

The increase in medical cannabis net revenue was primarily due to higher sales to Australia, Germany, Poland, and the UK, as well as increased revenue in Canada to insurance covered and self-paying patients.

Aurora's consumer cannabis net revenue fell 20 percent.

Looking ahead for the first quarter, the company expects continued strong global cannabis revenue driven by improved performance in Canadian medical, comparable performance in consumer, offset by temporary declines in some of international markets.

Global cannabis are expected to be slightly lower sequentially.

The company expects positive adjusted EBITDA to continue, with a decline versus sequential fourth quarter, due to lower revenue contributions from the higher margin international markets.

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