Ontario, Nov 14, 2018 (Issuewire.com) - Aurora Cannabis Inc. (NYSE: ACB) stock fell for consecutive days dropping a further 4.89% to USD $6.62 at the close of the market yesterday.
The company revealed its financial report and earnings for Q1 2019 on Monday 12th November, declaring a revenue of CAD $29.6 million representing a growth of 260% from the previous year, when the figure was CAD $8.3 million.
This revenue consisted of the medical markets and for the first time of the adult recreational market due to the legalization of cannabis in Canada, which commenced on October 17th, 2018, therefore, initiating the legal purchase of cannabis by adults for recreational purposes.
A total of CAD $0.6 million in revenue was accounted from sales through the recreational market. Aurora was amongst the highest selling vendors, accounting for 30% of all cannabis sold through the Ontario Cannabis Store (OCS); and two of the top three highest selling product. Furthermore, in British Columbia, Aurora provided the top four highest-selling dried flower products and in Prince Edward Island, Aurora and MedReleaf made up two of the top six selling vendors in the state.
The gross margin on cannabis sales is up to 70%; an increase of 12% on the figure of 58% this time last year. This was mainly down to the average selling price per gram of cannabis going up in value. The average net selling price of dried cannabis went up 15% from $7.32 to $8.39 when comparing the price in Q1 of 2018.
"The commencement of adult consumer use sales in Canada has been very successful for Aurora, with strong performances across all categories and brands. 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," explained Terry Booth, CEO of Aurora. He continued: "Given the strong unmet consumer demand evident across Canada, we are confident that our rapidly increasing production capacity will result in the continued acceleration of revenue growth."
The 4,996 kilograms of cannabis produced, marked a significant upturn in production; a rise of 395% compared to the 1,010 produced in Q1 2018. Of this, 2,676 kilograms were sold in comparison to the 890 at this time last year, which represents an increase of 201%. This has led to 67,484 medical patients being registered with the company, a figure up 250% from Q1 2018.
Booth added:" As a science, medical and patient-focused organization, we are committed to serving our patients with the products they require. As we built up inventory levels in anticipation of the adult consumer use market, we prioritized product availability for our over 67,000 existing patients. With production ramping up, we anticipate once again pro-actively driving additional growth in this core medical segment, both domestically and internationally."
Martin Chu - Chief Analyst: SMS Associates
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Source :SMS Associates
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