Aurora Cannabis Inc. shares retreated in the extended session on Wednesday after the pot company missed its sales expectations even after the decline in its forecast.
Aurora from Edmonton, Alberta
ACB, + 3.34%
ACB, + 3.15%
posted a net loss for the fourth quarter of $ 2.26 million, with net sales of $ 98.94 million CAD and an adjusted Ebitda loss of $ 1
The analysts surveyed by FactSet had estimated adjusted losses for a revenue share of C $ 108 million at $ 0.06. With net sales of $ 19.1 million, Aurora generated net income of $ 79.9 million, or 17 cents per share, last year. Aurora shares fell 9% on OTC results.
Earlier this year, Aurora executives announced that the company was on track to achieving some sort of profitability: adjusted, the company would show a positive value for earnings before interest, taxes, depreciation and amortization. Aurora adjusts the Ebitda number for, among other things, the transformation of biological assets.
In August, however, the company seemed to exceed the figure. A press release said it was "on track" to achieve a positive adjusted Ebitda number without mentioning a specific timeframe as it had before. In the forecasts published in Wednesday's announcement, Aurora has even stopped pointing out this adjusted profitability. Instead, Aurora expects underlying Ebitda to continue to improve in the future, driven by expected revenue growth, gross margin improvement and prudent VVG growth.
] Prior to the forecast for August, analysts surveyed by FactSet estimated sales of $ 111.9 million for the fourth quarter. In the August update, the company quashed expectations and told investors that it was on track to post C $ 100- $ 107 million less excise duties, but ultimately did not reach that mark.
"In 2019, Aurora has taken its place as the global leader in cannabis production, research, innovation and international market development," said CEO Terry Booth in Wednesday's announcement. "We are implementing all our strategic priorities."
Aurora plans to hold a conference call with executives Thursday, 9:00 am Eastern Time.
Aurora's fourth-quarter results appear in a series of disappointing top-line results from the largest Canadian pot companies. Difficulties in planting and packaging the plant have contributed to the inadequacy of legal cannabis use in Canada for recreational use, as well as the relatively small number of retail locations in provinces such as Ontario, the most populous of other manufacturing facilities prior to the legalization of recreational activities Aurora reported substantial goodwill on the balance sheet last October, which is approximately $ 2.4 billion, according to third quarter financial results. It is difficult to determine when and if the company depreciates the value.
Although Aurora its stake in Green Organic Dutchman Holdings Ltd. sold.
TGOD, + 5.02%
TGODF, + 4.86%
for $ 86.5 million, these shares were still in the books during the June quarter. The company's bottom line in the past has been impacted by the value of a number of its investments in other cannabis companies, such as the Dutch, and the volatility in this sector.
US-traded Aurora shares gained 30% this year. with the S & P 500 Index
SPX, + 0.72%