Aurora Cannabis jumps 55 percent thanks to lockdown stockpiling

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

Friday, Aurora Cannabis was trading up 55 percent, to $14.32.

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

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 50.8 million in Canadian dollars ($36.18 million). for the third quarter ended March 31 from 80.2 million ($56.92 million) a quarter ago.

Quarterly revenue at Aurora Cannabis rose to 75.5 million ($53.79 million) in the third quarter ended March 31 from 56 million ($39.74 million) in the prior quarter.

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