-=Aurora Cannabis (ACB) reported earnings on Wed 11 Sept 19 (a/h)

Aurora Cannabis misses Q4 estimates 

Adjusted EBITDA loss of CAD$11.7 mln vs. (CAD$7.7 mln ests), represents an improvement of 68%; revenue +193% to CAD 98.9 mln vs. $103.5 mln consensus.

Net cannabis revenue up 61% sequentially to $94.6 million Canadian consumer cannabis revenue up 52% to $44.9 million Medical cannabis revenue up 10% to $29.7 million Wholesale revenues of $20.1 million. Cash cost to produce per gram sold declined 20% sequentially to $1.14 per gram in Q4 2019.

Production volume increased 86% sequentially to 29,034 kgs. Gross margin on cannabis net revenue increased by 3% to 58% sequentially.

The global cannabis and hemp markets represent a significant opportunity for Aurora and the Company will continue to make the necessary investments today to build long-term value for shareholders. However, Aurora will take a balanced approach to these investments with a focus on operating a sustainable and profitable business. The introduction of new product formats to the Canadian consumer market this fall represents a significant opportunity for the Company. Aurora expects to have a robust product line-up ready to launch in December. Given the very early stage of development of the consumer market in Canada and international medical markets, management anticipates that quarter to quarter sales volumes and revenues may be volatile.

The Company expects adjusted EBITDA to continue to improve in the future due to expected revenue growth, improvements in gross margin and prudent SG&A growth.