Aurora Cannabis Inc. ACB reported on its financial and operational Results for the second quarter of the fiscal year ended last week on December 31, showing that this is the case achieved positive Adjusted EBITDA of CAD$1.4 million ($10.04 million), consistent with previous guide.

The Canadian cannabis Giant anticipates that EBITDA will remain positive going forward while working to achieve positive operating cash flow.

Cantor Fitzgerald’s Pablo Zuanic took a closer look at the company’s earnings report and quarterly performance and highlighted that Cash burn “remains a problem” while “lower interest costs (debt repayment) and better working capital management are likely to support OCF trends going forward.”

The Analyst

Zuanic kept an “Overweight” rating on the company’s stock and lowered its 12-month price target of $2.35 from $3 due to a sector downgrade.

The thesis

The analyst noted that Aurora was among the first to rescale its recreational cannabis business in Canada, leading to the establishment of a stronger position in the global cannabis market.

“The scale change coupled with cost reduction efforts and facility optimization has helped the company build a more sustainable moat in its domestic and international medical business,” he said.

In addition, the company is preparing for a leisure goods sales launch in Germany, expected by spring 2025, and sees “the possibility of a ‘pilot program’ in the early stages,” Zuanic said.

That of the Federal Minister of Health final draft awaited Be public knowledge in the coming months with final approval of the cannabis program and structure in late 2024.

“As ACB is one of only three domestic licensed manufacturers, the company expects to play an active role in the German rec market once sales start,” continued Zuanic.

In addition to international expansion, the company is striving, given its recent activities, to position itself in a related business field acquisition of a majority stake favor, a supplier of propagated vegetables and ornamentals in North…