Aurora Cannabis Inc.’s stock fell nearly 6% on Thursday after the Canadian marijuana company missed the analyst estimate for its fourth-quarter revenue. Although it reported a narrower loss than in the previous year due to robust international business, the revenue figures fell short of expectations.
Aurora Cannabis, a major player in the cannabis industry, faced challenges in meeting revenue targets for the fourth quarter. Despite narrowing losses, the company’s financial performance did not align with market expectations.
Revenue and Losses
Aurora Cannabis reported a loss of C$20.8 million in its fiscal fourth quarter, compared to a loss of C$76.2 million in the year-ago quarter. While the company did not provide specific figures for loss per share, the overall financial picture showed improvement.
Revenue Figures
Revenue rose by 5% to C$67.4 million, but this fell below the FactSet consensus estimate of C$69.5 million. The increase in medical cannabis net revenue by 20% to C$45.6 million was primarily driven by higher sales to Australia and Europe following the launch of cultivars in those markets. However, consumer cannabis net revenue declined to C$10.2 million from C$14.5 million as the company prioritized supply to higher-margin international business.
CEO’s Perspective
Aurora Cannabis CEO Miguel Martin highlighted that 2024 marked the company’s strongest fiscal year ever, with a 21% increase in annual revenue. Additionally, the company reported its first annualized adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2024, amounting to C$12.8 million. The company also strengthened its balance sheet and fully repaid its convertible debt, ending the year with C$180 million in cash.
