Aurora Cannabis stock and most other marijuana stocks rose slightly late Thursday after the Canadian pot producer’s fiscal-second quarter sales came in better than expected, even as it reported a steeper-than-expected per-share loss and recreational sales slipped.
The company reported the results after a broader marijuana stocks rally — spurred by the U.S.’ legalization prospects and signs of a bigger retail craze — turned sharply negative during Thursday’s session.
The results also come as the company navigates production rollbacks and facility closures, as well as a shift toward premium weed offerings and away from cheaper, and less profitable, product.
Aurora Cannabis Earnings
Aurora lost 1.74 Canadian dollars per share during the quarter, according to a filing. That was far worse than the 24 cents forecast by Wall Street.
Net sales rose 11% to 70.3 million Canadian, excluding provisions. That was above forecasts for 69.42 million Canadian.
Aurora reported a total net loss of 292.8 million Canadian. That was deeper than the 107.2 million from the prior quarter.
When measured by adjusted EBITDA — or earnings before interest, taxes, depreciation and amortization — Aurora lost 12.1 million Canadian. That was a narrower loss than a year ago.
“Adjusted EBITDA for the quarter, while vastly improved year over year, was impacted by several decisions that we believe will clear a path for our premium product focus and more variable cost model,” CEO Miguel Martin said in a statement.
Aurora has had to back away from profitability targets in the past. In November, the company said its goal was to reach positive adjusted EBITDA in fiscal Q2. In December, it said the metric for the quarter would still be a loss that would nonetheless “improve from Q1.”
Recreational sales came in at 28.6 million, up 25% from a year ago. Vaping products and concentrates helped those gains. But those sales were lower than the 34.3 million booked in the prior quarter.
Medical sales for the quarter came in at 38.9 million Canadian.
Adjusted gross margin on cannabis sales slipped from a year ago, due to “the purposeful reduction in production levels” at its Aurora Sky facility. Aurora during the quarter also took a property-related impairment of nearly 221 million.
The company said it had improved its cash use compared to the situation a year ago. Aurora said it had cash of 565 million Canadian dollars on hand as of Wednesday.
Aurora Cannabis Stock, Marijuana Stocks
Aurora Cannabis stock was flat early Friday, erasing strong initial gains late Thursday. ACB stock plunged 23% to 14.48 in Thursday’s stock market action, following a massive rally earlier in the week.
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