Aurora Cannabis Inc (TSX: ACB)(NYSE: ACB) announced its financial returns for the most recent quarter ending on September 30th, 2018.
Among other things, the company reported a 260% increase in revenue to $29.7 million, along with proforma revenues going up by 333% to $35.8 million.
These cannabis revenue figures comprised of revenues from mainly medical markets, with adult use revenues amounting to only $0.6 million, a value that’s sure to spike as initial shipments received by Canadian provinces only started on the last days of September.
Aurora has consistently been ranked top or among the top-selling cannabis brands in most Canadian provinces. According to the press release, Aurora brands supplied over 30% of the total market in Ontario, while also being the fourth largest seller of dried cannabis products in British Columbia. In Prince Edward Island, one of Canada’s easternmost provinces, Aurora lists as the 2nd largest company in the region in overall revenue.
Other positive financial metrics, aside from the drastic increase in revenues, include a gross margin on cannabis of 70%, up 12 percent in comparison to the first quarter of the year. Additionally, cost of sales decreased by 12 percent compared to Q1 2018, while cost to produce per gram decreased by 22.5 percent. These improvements are largely attributed to more efficient production methods that have been implemented after the acquisition of CanniMed.
The total active registered medical patients currently number at 67,484, up 250% in comparison to Q1 2018, while total kilograms produced and sold are at 4,996 and 2,676, up 395% and 201% respectively.
“We continue to successfully execute our differentiated and diversified strategy committed towards domestic and international expansion in the medical cannabis market, adult consumer use sales, production scale-up, innovation, plant and medical research, and product development. The commencement of adult consumer use sales in Canada has been very successful for Aurora, with strong performance across all product categories and brands,” said Terry Booth, Aurora CEO.
“Our initial roll-out success demonstrates how our high-quality Aurora Standard products and well-positioned brands have resonated strongly with the consumer market and our preparedness for the logistical challenges in effectively bringing our products to market. Given the strong unmet consumer demand evident across Canada, we are confident that our rapidly increasing production capacity will result in continued acceleration of revenue growth,” he added.
Other notable operational developments include its new Aurora Sky facility, which received a sales license from Health Canada on October 17th, 2018. Overall Aurora’s been making considerable headway in improving its production capacity, along with the acquisition of various production and sales licenses. Currently, the company is running at a 70,000 kg annual production capability and are planning to grow that figure to 150,000 kg per annum in the next year.
Aurora Cannabis Inc. Company Profile
Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per annum and sales and operations in 19 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies.
Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution. – Aurora