Aurora Cannabis has published its Q3 results, revealing its fifth consecutive quarter of positive adjusted EBITDA and a major new acquisition as its medical cannabis arm continues to be its key driver of growth.
According to financial figures published last week, Aurora saw revenues rise to C$64.4m from C$61.1m in the second quarter of the previous fiscal year.
This was predominantly driven by a 16% increase in its international medical cannabis sales to C$45.1 million.
The company attributed this growth to strong sales in the UK and Australian markets, helping gross margins (62%) for the segment stay at its target range of above 60%, though dipping slightly year-on-year from 62%.
Adult use revenues dipped from C$14.6 million to C$11.6 million ‘due to the decision to allocate products to higher margin markets’. This was reflected in its gross margins, which grew to 26% from 20% year-on-year.
In an effort to bolster its international medical cannabis business, which now reportedly counts for around 70% of its consolidated revenues, Aurora announced in a separate press release that it had acquired Australian firm MedReleaf Australia.
Aurora has been an investor in MedReleaf since 2017 and has now purchased 90% of the company it did not already own in a deal worth C$44 million.
Despite the positive growth in revenues and adjusted EBITDA, which rose from C$3m to a record C$4.3m over the quarter, Aurora reported a net loss of C$25.2m.
This represented a significant reduction from the C$62.4 million net loss it reported a year earlier and beat analyst expectations, reflecting the company’s continued progress in reducing cash burn.
“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. Our international medical net revenue grew 41% year-over-year in Q3, demonstrating Aurora’s ability to meet diverse patient needs in markets across the world,” stated Miguel Martin, Chief Executive Officer of Aurora.
