Aurora ended the fiscal year with no debt on its cannabis business.
Aurora Cannabis (NASDAQ: ACB) posted fiscal year 2024 fourth-quarter results ending March 31 that surpassed analyst expectations for revenue, while also posting record adjusted EBITDA and narrowing its net loss.
The Edmonton-based company’s fourth-quarter revenue came in at $67.4 million, beating analyst expectations of $51.38 million and increasing 5% from $63.9 million in the same quarter last year.
Aurora reported a net loss from continuing operations of $20.8 million for the fourth quarter, a significant improvement from the $76.2 million loss in the same period last year. For the full fiscal year 2024, the net loss from continuing operations was $59 million, versus $183.2 million for the nine months ending March 31, 2023.
The company achieved record adjusted EBITDA of $12.8 million for the fiscal year, versus an adjusted EBITDA loss of $400,000 in the previous year. Total revenue for the year increased 21% to $270.3 million from $173.7 million in the previous nine-month fiscal period.
“We are incredibly pleased to be reporting our strongest fiscal year ever at Aurora,” CEO Miguel Martin said in a statement. “We also strengthened our balance sheet…and fully repaid our convertible debt.”
The company’s global medical cannabis net revenue grew 20% year-over-year in the fourth quarter to $45.6 million, driven by expansion in Australia and key European markets. Medical cannabis sales accounted for 68% of Aurora’s total fourth-quarter revenue, up from 59% in the same quarter last year.
Aurora ended the fiscal year with approximately $180 million in cash, down from $234.9 million at the end of the previous fiscal year, but with no debt on its cannabis business.
The company expects revenue to grow in the mid-to-high teens percentage range in fiscal Q1 2025, which ends June 30, versus 2024’s fourth quarter.
The company listed some growth drivers to achieve that:
- Regulatory reforms in Germany expected to increase medical cannabis market size
- Continued strength in key European markets
- Incremental revenue from recently acquired MedReleaf Australia
- Seasonally higher quarter for plant propagation segment due to peak spring floral sales
Other targets for 2025:
- Consolidated adjusted gross margins: Projected to remain similar quarter-over-quarter
- Adjusted EBITDA: Expected to be higher than the fourth quarter of 2024, driven by revenue growth and comparable margins
- Operating cash flow: Anticipated improvement versus the fourth quarter of 2024
- Free cash flow target: Maintaining goal of achieving positive free cash flow by end of calendar year 2024
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