Please ensure Javascript is enabled for purposes of website accessibility

Aurora Cannabis Reports Fiscal Third-Quarter 2020 Results

By Todd Campbell - May 14, 2020 at 5:47PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The marijuana company reported double-digit percentage sales growth.

Aurora Cannabis (ACB 2.21%) unveiled its fiscal third-quarter financial results after the market closed on Thursday, reporting net revenue growth of 15.9% year over year to 75.5 million Canadian dollars and a net loss of 137.4 million Canadian dollars. 

In February, the marijuana company announced a major restructuring to reduce costs and accelerate its pathway to profitability, which translated into improved financial performance in the third quarter. 

Marijuana on top of a U.S. Dollar bil.

IMAGE SOURCE: GETTY IMAGES.

The company benefited from increasing marijuana sales in both the medical and recreational markets during the period.

Canadian medical marijuana net revenue increased to CA$27.0 million from CA$25.6 million in the previous quarter, despite a 4% decrease in active registered patients. International medical marijuana net revenue jumped 125% sequentially to $4 million as sales resumed in Germany. On the recreational front, consumer net revenue improved 68% from fiscal Q2 to CA$38.6 million in fiscal Q3 thanks to volume growth, the launch of Aurora's value-oriented brand, and the roll-out of Cannabis 2.0 products such as vaporizers in December.

On the bottom line, selling, general, and administrative expenses totaled CA$80.1 million, down CA$19.7 million from CA$99.9 million in fiscal Q2. That decline came as a result of the company's restructuring plan, which included a headcount reduction and lower capital expenditures.

Looking forward, Aurora is entering its fiscal fourth quarter with an SG&A run rate of roughly CA$60 million, including research and development costs; management expects that SG&A run rate to fall below CA$45 million by the time it's exiting its fiscal Q4. The expected decline in expenses has management targeting positive adjusted EBITDA in fiscal Q1 2021. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Aurora Cannabis Stock Quote
Aurora Cannabis
ACB
$1.39 (2.21%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
323%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.