Aurora Cannabis (NASDAQ:ACB) saw its international sales for the first half of 2024 reach C$39.3 million ($28.9 million), reflecting a 31% year-over-year increase. This growth includes the full acquisition of MedReleaf Australia in February 2024, which contributed significantly to the sales boost. A Wednesday report by Pablo Zuanic of Zuanic & Associates provides a detailed analysis of the company's recent activities and financial standing.
International Sales And Market Position
Aurora remains a leader in the export of Canadian medical marijuana (MMJ), accounting for more than 30% of Canada's MMJ exports.
Key markets include Australia, Germany, Israel, Czechia and Portugal, with notable growth in the Czech and Portuguese markets.
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Profit Margins And Cash Flow Trends
The company reported encouraging profit margin trends, with adjusted cash gross margins for its global cannabis business reaching 69% in the June quarter, up from 66% in March and 61% a year ago.
Despite this, recurring cash operating expenses in Q2 2024 were slightly higher than adjusted cash gross profits, leading to a 102% ratio.
Still, this represents an improvement compared to the previous fiscal year. Aurora's net cash position improved to C$63 million, with positive operating cash flows of C$8.4 million for the quarter.
Valuation And Strategic Outlook
Aurora Cannabis is currently valued at C$516 million, with an enterprise value of C$543 million. The company trades at 1.6 times its current sales run rate, significantly below the multiples seen by competitors like Tilray (NASDAQ:TLRY) and Canopy Growth (NASDAQ:CGC). Zuanic suggests that while Aurora's financial and operational trends are showing signs of improvement, the company's valuation remains relatively attractive compared to its peers.
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