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Aurora Cannabis Inc ACB

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Morningstar’s Analysis

Valuation
Currency in USD

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Lockdown Hits Aurora’s Q3 Hard; Slashing Fair Value Amid Continued Challenges and Massive Dilution

Analyst Note

| Kristoffer Inton |

Similar to what we’ve seen among other Canadian cannabis producers, Aurora’s fiscal third-quarter results suffered heavily from lockdowns to control the COVID-19 pandemic in Canada. Unlike previous lockdowns, most dispensaries were closed to in-person sales and only offered online ordering for pick-up or delivery. As a result, cannabis net revenue declined 21% year over year and 18% sequentially to CAD 55 million. Adjusted EBITDA losses widened sequentially to CAD 24 million from CAD 17 million the second quarter. On the positive side, it’s still narrower than the prior-year quarter loss of CAD 50 million. The year-over-year progress reflects the overhead expense progress Aurora has made.

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Company Profile

Business Description

Aurora Cannabis, headquartered in Edmonton, Canada, cultivates and sells medicinal and recreational cannabis through a portfolio of brands that include Aurora, CanniMed, Daily Special, MedReleaf, and San Rafael ‘71. Although the company primarily operates in Canada, it has expanded internationally through medical cannabis exporting agreements or cultivation facilities in more than 20 countries.

Contact
4818 31 Street East, Edmonton International Airport
Edmonton, AB, T9E 0V6, Canada
T +1 844 928-7672
Sector Healthcare
Industry Drug Manufacturers - Specialty & Generic
Most Recent Earnings Mar 31, 2021
Fiscal Year End Jun 30, 2021
Stock Type —
Employees 2,380

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