Aurora Becomes Latest Pot Firm to Miss Estimates

(Bloomberg) -- Aurora Cannabis Inc. shares fell 9% in post-market trading as it became the latest pot company to miss estimates.

Aurora reported quarterly net revenue of C$75.2 million ($56.8 million), below the average analyst estimate of C$90.6 million. Sales into the Canadian recreational market tumbled 33% to C$30 million.

The company’s adjusted loss before interest, taxes, depreciation and amortization was C$39.7 million, wider than the expected C$20.8 million. It also appeared to walk back its statement last quarter that it “continues to track toward positive adjusted Ebitda,” citing “near-term challenges to achieving positive adjusted Ebitda.”

Aurora said it has ceased construction at its Aurora Nordic 2 facility in Denmark, which will save approximately C$80 million over the next year. The company also reached an agreement with investors holding about C$155 million of its March 2020 convertible debentures to convert early at a lower price.

Earlier Thursday, Canopy Growth Corp. reported revenue that missed the lowest analyst estimate amid a large restructuring charge, sending its shares to the lowest since 2017. Investors are growing increasingly impatient with cannabis companies that don’t show a clear path to profitability.

To contact the reporter on this story: Kristine Owram in New York at kowram@bloomberg.net

To contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Richard Richtmyer

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