Aurora Reports 20% YoY Uptick In Global Medical Marijuana, Expects Benefits From International Cannabis Regulatory Reforms

Aurora Cannabis Inc. ACB ACB announced its financial and operational results Thursday for the fourth quarter and fiscal year 2024.

The Alberta-based cannabis giant noted the year-over-year comparison quarter for the fourth quarter of 2024 ending March 31, 2024, is the third quarter of fiscal 2023 ending March 31, 2023, as the fiscal year 2023 consisted of three quarters.

The company reported a 5% year-over-year increase in revenue to CA$67.4 million ($49.1 million) in the fourth quarter.

Global medical cannabis net revenue grew by 20% over the same period to CA$45.6 million. The increase in net revenue1 of $7.7 million was primarily due to higher sales to Australia and Europe in the current period following the success of newly launched innovative cultivars in these markets. 

Marijuana became legal in Germany on April 1st, making it the third country in the European Union to legalize adult-use cannabis after Malta and Luxembourg.

See also: Aurora Cannabis Earns Coveted GMP Certification For Australian Market, Here’s What It Means

“Aurora is the largest global medical cannabis company in nationally legal markets and our leadership is best differentiated by serving the diverse needs of patients across the world," CEO Miguel Martin said. "In Q4 2024, global medical cannabis net revenue increased 20% year-over-year, supported by the recent acquisition of MedReleaf Australia, where we saw significant growth, along with higher sales in Poland and the UK."

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Q4 2024 Financial Highlights

• Consolidated adjusted gross margin before fair value adjustments was 49% and in the prior year quarter.
• Adjusted gross profit before fair value adjustments was CA$33.3 million, compared to CA$31 million in the prior year quarter, representing an increase of 8%.
• Adjusted gross margin before fair value adjustments on medical cannabis net revenue reached 66%, compared to 60% in the prior year quarter and within the company’s target range of 60% and above.
• Consumer cannabis net revenue was CA$10.2 million, compared to CA$14.5 million in the prior year quarter.
• Adjusted gross margin before fair value adjustments on consumer cannabis net revenue was 16%, decreasing from 25% compared to the prior year quarter.
• Plant propagation net revenue was wholly comprised of the Bevo business, which contributed CA$10.4 million of net revenue compared to CA$10.8 million in the prior year quarter.
• Adjusted selling, general and administrative expenses were CA31.6 million, which excludes CA$8 million of restructuring and non-recurring costs.
• Net loss from continuing operations was CA$20.8 million compared to net loss of $CA76.2 million for the prior year period.
• Adjusted EBITDA came in positive at CA$1.9 million, compared to CA$2 million for the prior year quarter.

What's Next

Going forward, in the first quarter of 2025, the company expects to achieve consolidated net revenue percentage growth in the mid to high teens from the fourth quarter of 2024. Aurora stated that it is driven by "growth in high margin international medical cannabis revenue from recent regulatory reforms in Germany which is expected to increase the size of the market, combined with continued strength in key European markets, as well as incremental revenue from MedReleaf Australia."

Now read: Aurora Cannabis: Medical Market In Focus, Golden Cross Suggests Stock Uptrend Ahead Of Q1 Earnings

ACB Price Action

Aurora's shares traded 2.97% higher at $5.89 per share during the pre-market session on Thursday morning.