Was the newly created recreational cannabis market in Canada unable to scale with consumer demand? Not according to the numbers that Aurora Cannabis (NYSE: ACB) just released.
The company just released its financial results for the quarter that began only a short period of time after Canada legalized recreational cannabis on October 18th in 2018. The quarter’s results for the period that began in December and ended in March revealed that the company’s net revenue increased by 20%. The company increased its net revenue by 20% to US$48.5 million after a sequential growth in recreational sales of 37%.
International medical cannabis sales also increased and appeased investors with a 12% growth to an approximate $21,579,915. Aurora Cannabis still leads the pack in Canada’s medical cannabis industry with sales of medical cannabis to new total of 82,745 patients after it reported close to 70,000 patients at the end of December in 2018.
The company has restated its goal to reduce the production cost associated with dried cannabis flower to around C$1, or US$0.74, per gram through a massive push to scale up its cannabis production numbers. Aurora Cannabis intends and expects to cultivate and produce 600,000 kilograms, or an approximate 1,322,773 pounds of cannabis, annually by mid-2020. It managed to double the current production amount to 15,590 kilograms of cannabis in the quarter ended in March and expects a production number of 25,000 kilograms for the quarter that ends in June of this year.
Terry Booth, Chief Executive Officer of Aurora Cannabis, in the company’s earnings announcement, stated: “We achieved solid revenue growth and strong operating results in a quarter proven challenging across the industry.”
The author for this article does have a current position in Aurora Cannabis stock.
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