- Aurora Cannabis reports its adjusted loss to have declined to £29.66 million in Q3.
- The pot producer beats FactSet's estimate for revenue by 24% in the third quarter.
- The Canadian company sold 12,729 kg of cannabis in Q3 that marks a 39% YoY increase.
Aurora Cannabis (TSE: ACB) said on Thursday that its loss contracted in the third quarter as compared to Q2 as consumers in Canada and the United States stockpiled cannabis before the start of the Coronavirus lockdown.
Following the announcement, shares of the company were reported 13% up in the stock market in after-hours trading on Thursday. Analyst Owen Bennett of Jefferies currently has a “hold” rating on Aurora Cannabis’ stock. At the time of writing, Aurora Cannabis has a market cap of £840 million.
Aurora Cannabis tops FactSet’s estimate for revenue by 24%
In the third quarter that ended on 31st March, Aurora reported its adjusted loss (before interest, tax, depreciation, and amortization) at £29.66 million. In the second quarter, the figure was recorded at a much higher £46.83 million.
On the revenue front, the company posted £44.08 million in the third quarter versus £32.70 million that it registered in Q2.
Aurora’s sales in the recent quarter were reported 13% higher than FactSet estimate with sales climbing 24% as compared to Q2 in recreational weed.
In the third quarter, the pot producer said that it sold 12,729 kg worth of cannabis that marks a 39% increase as compared to the same quarter last year. The increase in sales of cannabis was attributed to it being an essential service in multiple states and provinces across the United States and Canada.
The third quarter marked the 1st full period of sales for the company in its cannabis 2.0 portfolio that offers products like edible gummies, vapes, beverages, and chocolates that consumers stockpiled ahead of the government imposed COVID-19 lockdown.
Aurora Cannabis hopes to turn profitable in fiscal 2021
The Canadian company also expressed confidence on Thursday that it will turn profitable in the upcoming financial year and reassured its commitment to keeping its capital spending under £82 million in 2nd half of 2020. Aurora Cannabis currently boasts an equity facility worth £205.45 million.
In Q1 of fiscal 2021, Aurora added, its capital expenditure is likely to be lower than the last two quarters of 2020.
Including the gain in extended trading on Thursday, Aurora Cannabis is roughly 55% down year to date in the stock market. It is currently trading at £7.59 per share but printed its year to date low of £4.84 per share earlier this week on Wednesday.
Its performance in 2019 was also reported largely downbeat with an annual decline of roughly 65%.