Shares of Aurora Cannabis Inc (NASDAQ: TSX:$ACB (+1,44 %)) skyrocketed a whopping 40% after the Canadian cannabis producer announced its impressive results for the third quarter of fiscal 2025. The Edmonton-based company benefited from a significant increase in revenue and profitability, attributing the success to its growing global medical cannabis business and significant operational efficiencies.
In the third quarter, Aurora Cannabis generated total net revenues of $88.2 million, an impressive 37% increase compared to the same period last year. In particular, the global medical cannabis segment proved to be the main growth driver. Net sales in this segment increased by 51% to USD 68.1 million, accounting for almost 77% of the company's total net sales. Notably, this segment also generated 90% of Aurora's adjusted gross profit.
The company also reported a record net profit of $31.2 million, representing an impressive 282% year-on-year increase. Adjusted EBITDA, a measure of operating earnings before interest, taxes, depreciation and amortization, reached a record $23.1 million, a 316% increase over the same period last year. A positive free cash flow of USD 27.4 million was also generated for the first time in the third quarter.
Miguel Martin, Executive Chairman and CEO of Aurora Cannabis, attributed the strong performance to several key factors, including strong sales in key markets such as Australia, Germany, Poland and the UK, as well as stable revenue from Canadian insured and self-pay patients. "Our strategic focus on sustainable growth, operational excellence and profitability has enabled us to achieve these milestones," said Martin, recognizing the dedication of the entire team.
The company's balance sheet also shows a strong financial position. Aurora has cash and cash equivalents of $180 million and is virtually debt free, except for non-recourse debt related to Bevo Farms Ltd, a subsidiary of the company.
Looking ahead to the fourth quarter of fiscal 2025, Aurora Cannabis is optimistic. The company expects continued revenue growth, particularly in the international medical cannabis market. In addition, a seasonal increase in sales in the area of plant propagation is expected. Margins are also expected to remain robust and adjusted EBITDA is expected to remain in positive territory.
The sharp rise in Aurora's share price reflects investors' increased confidence in the company's long-term profitability and growth. Investors seem convinced that Aurora Cannabis can further strengthen its position in the increasingly competitive cannabis market.
