After U.S. markets closed for trading yesterday, medical and consumer cannabis company Aurora Cannabis Inc. (ACB:NYSE; ACB:TSX) announced financial results for Q3/20 ending March 31, 2020.
The company advised that since it first announced its Business Transformation Plan in February 2020, it has taken numerous steps that were designed to strengthen Aurora's balance sheet and reduce operating costs in order to achieve profitability and positive cash flow.
The firm advised that in Q3/20 net revenue increased by 18% quarter-over-quarter to CA$78.4 million and that cannabis net revenue, excluding provisions, was CA$72.6 million, a 15% increase versus Q2/20.
The company highlighted that consumer cannabis net revenue, excluding provisions, was up 24% from the prior quarter to CA$41.5 million. The firm claimed that this increase was due to the launch of Daily Special, Aurora's value brand, and a full quarter of Cannabis 2.0 products. The company added that overall global medical cannabis net revenue also demonstrated healthy growth of 13.5%.
During the current COVID-19 pandemic the company noted that in the near term it is continuing to focus on market share rather than specific revenue targets.
Aurora additionally reported adjusted EBITDA for Q3/20 was a loss of CA$45.9 million, which represented an improvement of CA$34.4 million from the prior quarter's adjusted EBITDA of CA$80.3 million.
The company's Executive Chairman and Interim CEO Michael Singer commented, "I am incredibly proud of the Aurora team for working through these challenging times in order to maintain uninterrupted operations at all of our production facilities and ensure we continue to meet the needs of our patients and consumers. I am also pleased that our third quarter 2020 financial results were in-line with our expectations and that we remain firmly on track with the cost-savings and capex goals we detailed during our business transformation plan in February 2020."
Aurora is headquartered in Edmonton, Canada, and stated that it is a global provider serving the cannabis industry in both medical and consumer markets.
Aurora Cannabis began the day with a market capitalization of around $726.8 million with approximately 109.5 million shares outstanding. ACB shares opened nearly 26% higher today at $8.35 (+$1.71, +25.75%) over yesterday's $6.64 closing price. The stock has traded today between $7.80 and $11.62 per share and is currently trading at $10.68 (+$4.07, +61.57%).
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