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Aurora Cannabis’ net loss widens in Q3

Like last quarter, Canadian-based cannabis producer Aurora Cannabis (NYSE: ACB) delayed its third-quarter earnings today. The company reported a loss of C$158 million compared to a loss of C$19 million in the third quarter of 2018. Net revenue jumped 305% year-over-year to C$65 million. Aurora Cannabis stock was trading down about 2% at 8:00 PM ET.

In Q3 2019, Aurora produced 15,590 kilograms of cannabis compared to 7,822 kilograms in the prior quarter and 1,206 kilograms in the prior-year quarter. The increase in production output was primarily due to the production capacity added by Aurora Sky and MedReleaf’s Markham and Bradford facilities.

Aurora expects to increase the current annual production capacity of 150,000 kilograms to 625,000 kilograms by December 31, 2020. Aurora reiterated its target for Q4 with production available for sale in excess of 25,000 kg.

With disciplined cost management, the company expects SG&A costs to grow modestly over the remainder of the fiscal year. With sustained revenue growth and lower cash costs per gram, Aurora expects to achieve positive EBITDA beginning in fiscal Q4 2019 (calendar Q2 2019).

The company’s active registered patients soared 69% year-over-year to 77,136 in Canada. Aurora expects the growth of the company’s global medical cannabis business to accelerate significantly over the next quarters and years with its footprint in the EU and Latin American countries.

ACB’s peer Tilray (TLRY) reported its first quarter 2019 results after the bell today. Tilray stock had jumped about 7% during the after-hours.

Shares of Aurora Cannabis have gained 69% since the beginning of 2019 and advanced 38% in the past 52 weeks. The stock closed today at $8.38, up 4.49%.

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