Aurora Touts 41% YoY Increase In International Medical Cannabis Q3 Revenue, Expands In Australia Via New Acquisition
Portfolio Pulse from Jelena Martinovic
Aurora Cannabis Inc. (NASDAQ:ACB) reported a 41% YoY increase in international medical cannabis revenue for Q3 FY2024, marking its fifth consecutive quarter of positive adjusted EBITDA. The growth was attributed to higher sales in Australia and Europe. Aurora also announced the acquisition of Indica Industries Pty Ltd, operating as MedReleaf Australia, for AUD$50 million, expected to drive positive free cash flow in 2024. Q3 financial highlights include a net revenue of CA$64.4 million and a net loss of CA$25.5 million, with a positive outlook for Q4.

February 08, 2024 | 4:04 pm
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POSITIVE IMPACT
Aurora Cannabis Inc. reports a 41% increase in international medical cannabis revenue for Q3 FY2024 and acquires MedReleaf Australia, expecting positive cash flow in 2024.
The significant year-over-year revenue growth and strategic acquisition of MedReleaf Australia, which is expected to contribute positively to Aurora's cash flow, are likely to be viewed positively by investors. The company's continued positive adjusted EBITDA and optimistic outlook for Q4 further support a positive short-term impact on ACB's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Aurora Cannabis acquires the remaining equity interest of Indica Industries Pty Ltd, operating as MedReleaf Australia, which is partnered with MedReleaf (MEDFF).
While the acquisition directly involves MedReleaf Australia, the impact on MedReleaf (MEDFF) is less direct since the acquisition is more about Aurora expanding its footprint in Australia rather than a direct change in operations or financials for MedReleaf. The relevance and importance are moderate due to the partnership connection, but the short-term price impact is likely neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50