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Shares of Aurora Cannabis Inc. fell back in Wednesday's broad session, after the pot company missed its revenue forecast, even after dropping its forecast.
The Aurora of Edmonton, Alberta
CBA + 3.34%
CBA + 3.15%
announced a net loss of C $ 2.26 million in the fourth quarter of the fiscal year, on net revenues of C $ 98.94 million, with an adjusted loss in Ebitda of 11.7 CA $ million ($ 8.9 million). In a separate document, Aurora stated that its net loss attributable to common shareholders was less than $ 200,000 and less than one cent per share.
Analysts surveyed by FactSet had estimated adjusted losses at $ 0.06 per share on a C $ 108 million turnover. Last year, in the same quarter, Aurora reported net income of C $ 79.9 million or 17 cents per share on net proceeds of C $ 19.1 million. Aurora shares fell about 9% after the results.
Earlier this year, Aurora executives said the company was about to achieve some kind of profitability: on an adjusted basis, the company would show a positive profit for earnings before interest, taxes, depreciation and amortization. Aurora adjusts, among other things, its Ebitda figure for the transformation of biological assets.
But in August, the company seemed to be backtracking, claiming in a press release that it was on track to get a positive adjusted Ebitda, without reporting a specific deadline, as it had already done. In the outlook presented in Wednesday's announcement, Aurora has even ceased to report adjusted profitability, stating instead "that it is expected that adjusted Ebitda will continue to improve as a result of growth. expected revenue, improved gross margin and cautious growth in SG & A expenses ".
Prior to the August forecast, analysts surveyed by FactSet had revenues estimated at C $ 111.9 million in the fourth quarter. In the August update, the company took into account expectations, telling investors that it was on track to realize accounting sales of $ 100 million to $ 107 million Canadian, net of taxes excise, but fail to achieve this goal.
"In 2019, Aurora has taken its place as a world leader in cannabis production, research, innovation, and the development of international markets," said Executive Director Terry Booth in a statement. published Wednesday. "We respect all our strategic priorities."
Aurora plans to hold a teleconference with leaders Thursday morning at 9 am Eastern Time.
Aurora's fourth quarter results come in the midst of a series of disappointing results from Canada's largest pottery companies. Difficulties in growing and conditioning the plant contributed to the lackluster start of legal recreational cannabis in Canada, as did the relatively small number of retail outlets in provinces such as Ontario, the most populous.
Like other cannabis-producing companies that bought farming assets and other production assets before the legalization of recreation last October, Aurora's balance sheet shows a significant difference between the two companies. significant acquisition, of approximately 2.4 billion Canadian dollars, according to its third quarter financial results. It is difficult to determine when and if the company will write the value.
Although Aurora has sold its stake in Green Organic Dutchman Holdings Ltd.
tgod, + 5.02%
TGODF, + 4.86%
for C $ 86.5 million on September 4, these shares were still in the books during the June quarter. The profitability of the company has in the past been affected by the value of a number of its investments in other cannabis producing companies, such as Dutchman, and by fluctuations in the sector.
Aurora US stocks traded in the US gained 30% this year, with the S & P 500 Index
SPX, + 0.72%
up 18.9%.
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