A worker looks at cannabis seedlings at the new Aurora Cannabis facility Friday, November 24, 2017 in Montreal. (THE CANADIAN PRESS/Ryan Remiorz) · The Canadian Press
Aurora Cannabis (ACB.TO)(ACB) shares climbed over 50 per cent on Wednesday, after the Canadian pot producer booked a nearly 40 per cent annualized jump in net revenue in its third quarter.
Calgary-based Aurora reported financial results before Wednesday’s opening bell. Shares climbed as much as 53 per cent, reaching their highest level since November.
“This quarter was record-breaking for Aurora, driven by all-time highs in global medical net revenue, net income, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), and free cash flow,” CEO Miguel Martin stated in a news release.
Aurora says net revenue for the three months ended Dec. 31, 2024 topped $88.1 million, up 37 per cent year-over-year. The company reported an annualized adjusted EBITDA increase of 316 per cent.
In a note to clients, Canaccord Genuity analyst Matt Bottomley said the results were “well above consensus expectations (particularly on gross/operating margins), as the company continues to see accelerated growth within its European/Australian medical segments.”
Aurora’s Toronto-listed stock soared to dizzying highs at the dawn of Canada’s legal recreational cannabis market in 2018. Canadian cannabis shares plunged shortly after legalization as the industry grappled with a litany of headwinds, from excess supply, to challenges at retail, a resilient illegal market, and excise taxes that have been dubbed too steep by producers.
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
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The Calgary-based company posted an annualized adjusted EBITDA increase of 316%. Read More
