Aurora Cannabis Inc. (NYSE: ACB) reported its third quarter financial results after the market close on Tuesday. The Canadian cannabis company reported larger-than-expected losses which caused its share to slide by 6% during Wednesday’s pre-market hours.
For the third quarter, Aurora reported earnings loss of CAD 0.16 per share on revenue of CAD 75.2 Million. FactSet analysts estimated earnings loss of CAD 0.05 per share on revenue of USD 67.6 Million.
Despite Aurora’s stronger-than-expected revenue growth, the Company’s earnings seemed to disappoint. Aurora’s gross revenue surged by 367% year-over-year, primarily led by the increased in its consumer base.
Revenue growth averaged 20% across all of Aurora’s key markets, driven by the stronger performance across its Canadian consumer, and Canadian and International medical cannabis consumer base.
Aurora’s Canadian Consumer market rose by 37%, while its Canadian Medical market edged higher by 8% and International Medical market surged by 40%.
Aurora’s medical patient base grew by 5% year-over-year to 77,136 at the end of the quarter. As of its earnings release, Aurora reported that its medical patient base was sitting at 82,745, a further 7% increase.
Cash cost to produce per gram declined by 26% year-over-year to USD 1.42 per gram. As a result, production volume increased by 99% to 15,590 kgs, up 1,200% year-over-year. Aurora noted that majority of the harvested occurred within the second half of the quarter.
Average selling price per gram decrease marginally due to product mix effects, extraction capacity constraints, and first full quarter impact of excise tax on medical cannabis.
“I’m exceptionally proud of our company and team as Aurora continues to deliver on our domestic and international growth strategy. We achieved solid revenue growth and strong operating results in a quarter proven challenging across the industry. We are laser focused on building a long-term sustainable business,” said Terry Booth, Chief Executive Officer.
Earlier in March, Aurora appointed billionaire investor Nelson Peltz as its strategic advisor. Peltz will work with Aurora on exploring potential partnerships to optimally fit the Company’s market segments. Peltz will also aid Aurora with its global expansion.
Peltz is the Chief Executive Officer and Founding Partner of Trian Funding Management, L.P., a multi-billion dollar investment management firm. Under Trian, Peltz has aided public companies that they believe are undervalued and provide assistance in restructuring their management.
“During the quarter, we formally welcomed Nelson Peltz a key strategic advisor. He has been incredibly engaged, collaborative, and strategically focused on assisting our pursuit of growth in global markets and with mature companies in adjacent industries.” concluded Booth.
Despite Aurora’s slip on Wednesday morning, shares have still soared by 65.9% this year.