Aurora Cannabis is now focusing solely on medical cannabis and international markets, said CFO Simona King at the TD Cowen Healthcare Conference, as reported by MarketBeat.
King reported CAD 94 million in overall revenue, up roughly 7% year-over-year, with global medical cannabis revenue reaching CAD 212 million year-to-date versus CAD 177 million in the prior period. Margins are in the "mid-to-high 60s%," a result, she said, of stepping away from lower-margin segments. Pricing pressure, she added, is also less of a factor in medical markets than in consumer cannabis.
© Aurora Cannabis
Aurora is scaling back its Canadian consumer business and divesting its plant propagation unit. King said the divestiture would make the company's financials "a lot cleaner," with some one-time costs expected this quarter from the consumer wind-down, followed by margin improvement.
From an international standpoint, Aurora holds one of only three domestic cultivation and manufacturing licenses in Germany under the government tender framework, and is expanding capacity there. In Australia, the company is focusing on core and premium products and expanding its distribution reach through a partnership with Leafio, parent company of patient platform Montu. In Poland, Aurora holds the number one market position, which King credited to supply reliability and quick responses to regulatory changes around telehealth.
Medical cannabis, King argued, operates more like a pharmaceutical market and investors have historically underappreciated that opportunity in favor of North American recreational.
Aurora recently set up a $100 million at-the-market facility for capacity expansion and potential M&A, with King saying the company will be patient and selective.
Source: MarketBeat
