Aurora Cannabis ACB saw its international sales for the first half of 2024 reach C$39.3 million ($28.9 million), reflecting a 31% year-over-year increase. This growth includes the full acquisition of MedReleaf Australia in February 2024, which contributed significantly to the sales boost. A Wednesday report by Pablo Zuanic of Zuanic & Associates provides a detailed analysis of the company’s recent activities and financial standing.
International Sales And Market Position
Aurora remains a leader in the export of Canadian medical marijuana (MMJ), accounting for more than 30% of Canada’s MMJ exports.
Key markets include Australia, Germany, Israel, Czechia and Portugal, with notable growth in the Czech and Portuguese markets.
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Profit Margins And Cash Flow Trends
The company reported encouraging profit margin trends, with adjusted cash gross margins for its global cannabis business reaching 69% in the June quarter, up from 66% in March and 61% a year ago.
Despite this, recurring cash operating expenses in Q2 2024 were slightly higher than adjusted cash gross profits, leading to a 102% ratio.
Still, this represents an improvement compared to the previous fiscal year. Aurora’s net cash position improved to C$63 million, with positive operating cash flows of C$8.4 million for the quarter.
Valuation And Strategic Outlook
Aurora Cannabis is currently valued at C$516 million, with an enterprise value of C$543 million. The company trades at 1.6 times its current sales run rate, significantly below the multiples seen by competitors like Tilray TLRY and Canopy Growth CGC. Zuanic suggests that while Aurora’s financial and operational trends are showing signs of improvement, the company’s valuation remains relatively attractive compared to its peers.
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