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By Rayk Riechmann

Another impressive top-line beat by Aurora Cannabis Inc. (Nasdaq: ACB) should have investors fired up.

The company reported a 17% revenue increase in its first fiscal quarter, mostly driven by a strong performance in the Global Medical Cannabis Market. ACB continues to outperform in key European markets with higher sales in Germany, Poland, and the UK.

Poland, after facing some regulatory headwinds in the past, is now back on track and can’t get enough of the ACB high-potency medical products.

While gross margins improved for medical cannabis and consumer cannabis segments, elevated SG&A costs led to a decrease in net income. Many of these expenses look temporary and related to the integration of recently-acquired MedReleaf Australia.

Management has also reiterated that EBITDA is expected to grow in the near-term with increasing operational efficiencies and a higher-margin sales mix. Of course, some variable costs will rise with increased sales, but we expect profitability to improve in coming quarters.

ACB is differentiated in the industry by free cash flow generation and an strong balance sheet. Notably, all cannabis operations are run completely debt-free and ACB maintains C$186 million in cash and cash equivalents.

And the last puff: ACB still trades at a discount compared to peers on an EV/EBITDA multiple and its own 3-year mean price/sales multiple.

Check out the full earnings report below and stay up to date on the global cannabis plug.

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