Aurora Cannabis Inc. losses grew faster than expected in its third quarter last year, according to a earnings report released late on Tuesday, which sent shares about 2% lower in retrospect.
ACB, + 4.49%
ACB, + 4.52%
reported a three-quarter loss of $ 1
Analysts asked for the average expected fiscal third quarter adjusted loss of 5 cents per share on net income of $ 67.6 million. For the fourth quarter, analysts have on average adjusted losses of 3 cents per share and net sales of $ 119.4 million. The company said it lost C $ 77.6 million from operations, almost double in what was lost in the previous period.
Compared to the second quarter, when the company sold its first recreational pot in Canada, net sales increased by 20%.
Aurora's appetite for convertible bonds contributed to the company's losses – since Aurora's share price increases, the company must reassess the convertible debt it has on its books. In the third quarter, it resulted in losses of C $ 101.5 million.
Aurora also said it took down NOK 9 million write-downs due to changes related to "assets supporting the production and sale of indoor home-grown systems" and a fall in "certain" permits and licenses.
Aurora said it sold $ 29.1 million of medical cannabis and $ 29.6 million of recreational pot in the third quarter. Compared to the previous quarter, which was the first to include almost three full months of legal Canadian recreational pots sales, Aurora grew 37% recreational revenue.
The company said it produced 15,590 kilos of pots in the quarter and sold 9,160 kilos. Aurora said it almost doubled its product because the new Alberta plant started operating and its Ontario facility expanded. The Alberta plant, called Aurora Sky, is expected to produce 25,000 kilos by the end of the fourth quarter.
Aurora leaders are expected to host a conference call to discuss the earnings report at 10.30 am Wednesday. 19659002] The Aurora share has increased 37% over the past year, as the S&P 500 index
SPX, + 0.80%
has increased 3.8%. Horizons Marijuana Life Science ETF
HMMJ, + 3.24%
has increased 14% in the past year, and ETFMG Alternative Harvest ETF
MJ, [2.459006] + 2.37%
is up 8.7%.