Proactive Investors - Aurora Cannabis Inc (TSX:TSX:ACB, NASDAQ:ACB) shares took off after Thursday’s market close as the cannabis producer reported a profit for the fiscal second quarter and reaffirmed it is on track to achieve positive free cash flow during the 2024 calendar year.
Shares of Edmonton, Alberta-based Aurora added 23.3% at US$0.55 shortly following the release of its 2Q earnings.
It achieved a profit of $0.3 million for the quarter compared to a net loss of $45.5 million in the year-ago quarter.
Aurora attributed the $45.8 million improvement to an increase in gross profit of $33.5 million, increased other income of $19.1 million, and decreased general and administrative expenses of $6.1 million.
The company also posted a 30% year-over-year increase in revenue from C$48.6 million to C$63.4 million on a 42% increase in its medical cannabis business to C$43.8 million and growth in its plant propagation segment.
“This is our strongest fiscal year to date, led by robust net revenue growth in our high-margin medical cannabis segment, coupled with positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth consecutive quarter," Aurora CEO Miguel Martin said in a statement.
"We are experiencing the benefits of diversification across our cannabis and non-cannabis platforms characterized by stability in Canada, record revenue in Europe and Australia, and early success with our most recent acquisition, Bevo Farms."
The CEO highlighted that the company is set to achieve $40 million in cost savings in fiscal 2024, on track to achieve its target of positive free cash flow during the year.
“By executing on our plan to deliver top-line growth and increased profitability, we are moving closer to reaching our target of positive free cash flow in calendar year 2024," he said.
“Our balance sheet is in a strong net cash position to pursue profitable growth opportunities through M&A, and we will repay the remainder of our US$5.3 million of convertible senior notes in February 2024."