uploads///Gross Income and EBITDA Estimates

Aurora Cannabis: Analysts’ Projections

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Dec. 4 2020, Updated 10:52 a.m. ET

Profitability

Aurora Cannabis (ACB) is in the expansion phase—similar to its peers (MJ) including Canopy Growth (WEED), HEXO (HEXO), and CannTrust (CTST). The expansion costs are expected to weigh down the company’s profitability and margins. Let’s look at what the analysts estimate for Aurora Cannabis in the next three years.

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Profitability estimates

Analysts expect Aurora Cannabis to report a gross income of 177 million Canadian dollars in 2019, 508 million Canadian dollars in 2020, and 937 million Canadian dollars in 2021. The gross income would translate into a gross margin of 56%, 59%, and 64% in 2019, 2020, and 2021.

For the EBITDA, analysts expect a loss of 137 million Canadian dollars in 2019. In 2020, the company’s EBITDA is estimated to turn positive to 208 million Canadian dollars. In 2021, the EBITDA is estimated at 413 million Canadian dollars. The initial investments in the expansion are expected to weigh down Aurora Cannabis’ 2019 EBITDA. In 2019, the company will likely have negative margins, which is meaningless. In 2020, the EBITDA margins are estimated to be 24%. In 2021, the EBITDA margins are expected to grow to 28%.

Aurora Cannabis’ gross and EBITDA margins are expected to expand in the next three years, which should be positive for the bottom line.

Next, we’ll discuss Aurora Cannabis’ earnings estimates.

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