8/15/2023 0 Comments Aurora cannabi![]() As illustrated in Exhibit 1, cannabis legalization still has a long way to go in Europe, and current regulations are complicated and difficult to navigate.and Canada, which is why Aurora is failing to grow its topline despite strong international sales. Although international revenue clocked in more than 35% YoY growth in FQ4, these markets are considerably smaller than the U.S. The Canadian medical cannabis market is growing slowly and the company is looking for growth in international markets, primarily in Europe.There are inherent problems that limit the company's growth. The market loves growth and disruption, and today, Aurora is finding it difficult to grow. In my opinion, Aurora has a growth problem as the company seems to be struggling to unlock meaningful growth opportunities despite the promising outlook for the cannabis industry. The company seems to be laser-focused on cutting costs to achieve its EBITDA goals, which is not a bad thing, but I doubt whether achieving this goal will move the needle and trigger a positive response from investors. ![]() Aurora, according to management, had $370 million in cash as of September 19. Medical cannabis segment revenue increased 4% YoY to C$36.6 million.Īs I have now gotten used to, the earnings call started with management discussing the progress Aurora has made in its cost savings goal along with the measures the company has taken to strengthen its balance sheet which include repurchasing $155 million in convertible debt.Consumer cannabis segment revenue declined 8% YoY to C$12.6 million.Net loss shot up to C$618.8 million from C$134 million (non-cash impairment charges of C$505.1 million).Adjusted gross margin shrank to 52% from 57% in FQ4 2021.EBITDA loss narrowed to C$12.9 million from C$21.8 million in FQ4 2021.Revenue declined 8.4% YoY to C$50.22 million.Aurora Q4 earnings - Saving costs to achieve positive EBITDA won't move the needleĪurora's fiscal fourth quarter performance was truly disappointing, but shareholders of the company are getting used to disappointing numbers from the company. Things do not seem to be changing either, and I will avoid Aurora Cannabis stock for the time being. With its first mover advantages, one would have thought Aurora would become a profitable cannabis giant, but industry dynamics and the company's questionable business strategy have made it difficult for Aurora to leverage the first mover advantages. Yesterday's earnings report did little to convince investors that Aurora is on the path to profitability. ( NASDAQ: ACB) has lost more than 40% of its market value since my previous article on the company in May.
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