Proactive Investors - Aurora Cannabis Inc (TSX:TSX:ACB, NASDAQ:ACB) shares moved higher in early trade on Thursday after the Alberta-based medical cannabis firm reaffirmed that it is on track to achieve positive free cash flow by the end of the 2024 calendar year along with fiscal third quarter financial results that demonstrated the strength of its medical cannabis segment.
The company also announced that it will become the largest global medical cannabis company operating in nationally legal markets following its acquisition of MedReleaf Australia, the company’s strategic partner since 2017 that holds the number two position in Australia’s medical marijuana market.
It expects the acquisition to be immediately accretive to its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and will allow the company to accelerate toward achieving positive free cash flow by the year-end.
For the fiscal third quarter that ended December 31, Aurora reported revenue of C$6.4.4 million, up from C$61.1 million in the year-ago quarter due to growth in Aurora’s medical cannabis business and higher sales in its plant propagation business, partially offset by declining consumer cannabis revenue.
Medical cannabis revenue grew 16% year-over-year to C$45.1 million on higher sales in Australia and Europe.
Aurora significantly narrowed its net loss year-over-year from C$62.4 million to C$25.2 million driven by increased profits and reduced operating expenses.
"Fiscal 2024 is on track to be our strongest to date, driven by the continued strength of our differentiated business model and our focus on profitable global medical cannabis markets,” Aurora CEO Miguel Martin said in a statement.
“Our international medical net revenue grew 41% year-over-year in 3Q, demonstrating Aurora's ability to meet diverse patient needs in markets across the world.”
Further, the company said it expects to become debt-free later this month.
In 3Q, it repurchased approximately C$23.1 million in convertible debentures with a balance of C$7.3 million remaining that the company said would be settled in cash in late February.
Aurora’s Toronto-listed shares added 3.9% at C$0.54 while its US-listed shares were up 0.6% at US$0.40 shortly after Thursday’s opening bell.