Aurora Cannabis Inc (TSX:ACB, NASDAQ:ACB) has reported better-than-expected third-quarter revenue and its second consecutive quarter of positive underlying earnings and said it is on track to achieve positive free cash flow by the end of 2024 as it targets a further $40 million of annualized cost efficiencies.
The Canadian cannabis company posted net revenue of $64 million for the quarter to end March 2023, up 4% from the previous quarter and 27% from 3Q 2022. That beat the $48.5 million expected by analysts, per Earnings Whisper.
Revenues in its global medical cannabis and Canadian consumer cannabis segments held mostly steady at $38 million and $14.5 million, respectively, and it benefitted from a $10.7 million contribution from the August 2022 acquisition of Bevo due to the onset of its traditionally strong seasonal period, the company said in a statement.
Adjusted underlying earnings (EBITDA) reached $0.3 million, from $1.4 million a quarter earlier, due to additional professional fees and consultant costs as it balanced lower corporate headcounts with ongoing compliance and regulatory needs.
"Over the last three years, our ongoing business transformation initiatives have delivered ~$400 million in annualized cost savings that have significantly reduced cash used in operating activities,” CEO Miguel Martin commented.
“In fact, cash use continues to improve as evidenced by the reduction from $35.5 million in Q2 2023 to $15.1 million in Q3 2023, excluding working capital. This impressive improvement is the launching point for the initiatives that will support our drive to our new financial target of positive free cash flow by end of calendar year 2024.”
The company said its balance sheet remains strong with a cash position of roughly $230 million and $80 million of convertible notes still outstanding.
Its Nasdaq-traded shares were up 1% at US$0.59 in pre-market trade.
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