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Aurora Cannabis revenue misses on lower prices; shares fall

Credit: REUTERS/BRENDAN MCDERMID

Aurora Cannabis Inc's fourth-quarter revenue missed analysts' estimates on Wednesday, as the Canadian company sold marijuana at lower prices, even as sales soared on the back of the country's legalization of recreational cannabis.

Adds share move, details on prices and sales; compares results with estimates

Sept 11 (Reuters) - Aurora Cannabis Inc's ACB.TO fourth-quarter revenue missed analysts' estimates on Wednesday, as the Canadian company sold marijuana at lower prices, even as sales soared on the back of the country's legalization of recreational cannabis.

U.S.-listed shares of the company fell 9.3% in after-hours trading.

The company said average net selling price of cannabis fell by C$1.08 per gram to C$5.32 per gram in the fourth quarter from the third, primarily due to an increase in sales to recreational and wholesale markets that yield lower prices than medical markets.

Canada became the first industrialized nation to legalize recreational use of cannabis late last year, in an effort to keep pot out of the hands of underage users and defeat the black market.

Aurora sold 17,793 kgs of cannabis in the quarter ended June 30, up from 9,160 kgs in the preceding quarter.

The Edmonton, Alberta-based company's revenue rose to C$98.9 million ($75 million) from C$19.2 million a year earlier.

Analysts on average had expected the company to post revenue of C$108.3 million, according to IBES data from Refinitiv.

($1 = C$1.32)

(Reporting by Debroop Roy in Bengaluru; Editing by Maju Samuel)

((Debroop.Roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1690; Reuters Messaging: debroop.roy.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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