Aurora Cannabis Inc (NASDAQ:ACB), a leading Canada-based global medical cannabis company, stock fell 5.08% (As on June 21, 11:14:02 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 24. In Q4 2024, global medical cannabis net revenue increased 20% year-over-year, supported by the recent acquisition of MedReleaf Australia, where the company saw significant growth, along with higher sales in Poland and the UK. The company also achieved the highest quarterly adjusted gross margin in medical cannabis of 66%, far ahead of the targeted range of 60%. Medical cannabis net revenue was $45.6 million, a 20% increase from the prior year quarter, delivering 68% of Aurora’s Q4 2024 consolidated net revenue and 90% of adjusted gross profit before fair value adjustments. The increase in net revenue of $7.7 million was primarily due to higher sales to Australia and Europe in the current period following the success of newly launched innovative cultivars in these markets. Aurora’s consumer cannabis net revenue was $10.2 million, compared to $14.5 million in the prior year quarter. The decrease was due to the decision to prioritize the supply of the GMP manufactured products to the high margin international business rather than the consumer business, which offers lower margins. Plant propagation net revenue was wholly comprised of the Bevo business, that contributed $10.4 million of net revenue compared to $10.8 million in the prior year quarter. Historically, approximately 65-75% of plant propagation revenue and up to 80% of EBITDA has been earned in the first half of the calendar year.

ACB in the fourth quarter of FY 24 has reported the adjusted earnings per share of 11 cents, beating the analysts’ estimates for the adjusted loss per share of 18 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 5 percent to $49.48 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue by 2.54%. Net loss from continuing operations for the three months ended March 31, 2024 was $20.8 million compared to net loss of $76.2 million for the prior year period. The decrease in net loss of $55.4 million compared to the comparative prior quarter is primarily due to an increase in gross profit of $27.3 million, a decrease in operating expenses of $1.1 million, and a decrease in other expenses of $29.4 million.