Aurora Cannabis posts smaller sequential loss as pot use rises amid lockdown

Aurora Cannabis posted a smaller loss compared with the prior quarter as customers in the United States and Canada stockpiled cannabis ahead of lockdowns, sending its U.S.-listed shares up 13% after the bell on Thursday.

The Canadian pot producer sold 12,729 kilograms of cannabis in the third quarter, 39% more than a year earlier. The sales spike comes as cannabis is an essential service in several provinces and states across Canada and the Unites States.

Its reported quarter was the first full period of sales in its so-called cannabis 2.0 portfolio, which includes vapes, edible gummies, chocolates and beverages, products that customers rushed to stock up ahead of the Covid-19 lockdowns.

The company said it was on track to be profitable in the next fiscal year and doubled down on its plans to keep capital expenditure below $100 million in the second half of the year.

Aurora said it expected capital spending in the first quarter of fiscal 2021 to be lower than the third and fourth quarters of 2020.

The Edmonton, Alberta-based company said adjusted loss before interest, tax, depreciation and amortization fell to C$50.8 million ($36.18 million) for the third quarter ended March 31 from C$80.2 million a quarter ago.

Quarterly revenue rose to C$75.5 million ($53.79 million) in the third quarter ended March 31 from C$56 million in the prior quarter.