Aurora Cannabis Earnings: What We Learned
Aurora Cannabis (ACB) released the last quarterly report on November 12, 2018, and the company showed some impressive numbers worth bargaining. Aurora, one of Canada's largest legal cannabis companies, claimed revenues increased by 260% over the past year. In addition, Aurora produced just under 4,996 kilograms of dried cannabis for the three month period ending September 30 this year. By comparison, for the third quarter of 2017, Aurora produced barely 1,010 kg of dried cannabis; In a year, the company has almost quenched the product's growing capabilities. This means that per report and as of September 30, 2018, the weighted average fair value minus the cost of completion and cost to sell for one gram of product, CAD 4.64, down from CAD $ 6.46 per gram per 30 June 201[ads1]8 .
Revenues and earnings values
Per report, the company showed total revenues for the relevant period of CAD 29.7 million, with earnings attributable to common shareholder clustering to just under CAD 104.2 million, an increase of more than 28 times the previously reported figure.
Together with these climbing figures, Aurora says that the gross cannabis gross margin climbed by 12% and is now 70%, mainly due to increased sales of cannabis oil in relation to dried cannabis sales and also due to an increase in average selling price for dried cannabis.
Cost of production and average price per gram
Per report, Auror's cash cost for the production of every gram of dried cannabis was sold by almost 23% year-over-year. It was also down by almost 15% from the previous quarter. The cash cost of sales per gram is CAD 1.80 for the quarter, an increase of 3.4% from the last quarter. These changes are likely to be attributed to improved and increasingly efficient production technology across the company and its subsidiaries, of which there are several.
For Aurora, the average price per Gram dried cannabis or cannabis oil marginally from the second quarter, from CAD $ 9.20 to CAD $ 9.19, per CNBC. The company sold just under 2 700 kg of cannabis, or around 5,900 pounds, in 3Q, a marked increase of around 200% from the same quarter last year.
Stock price drop
In US stock exchanges, Aurora's shares fell by approx. 3.8% in midday trading on Monday. Despite impressive numbers, investors probably found that a significant portion of Aurora's bottom line remains in non-cash investments in several other cannabis companies that have been successful as the legal cannabis industry has heated in recent weeks and months.
Aurora also faced increasing spending beyond October 17, the legalization date for Canadian marijuana sales. A MarketWatch report indicates that managers claimed that the company doubled its sales and marketing expenses to over USD 29 million in the quarter, although this is not likely to continue in the future due to Canadian regulations on advertising for cannabis companies. Other rising expenses include general and administrative costs, which have climbed by almost two thirds to CAD $ 35.9 million, as Aurora has continued to expand.
What It Means
Aurora is still one of Canada's best cannabis companies. Investors should be aware that while the company grows at an impressive rate, Aurora is still focused on special areas like investment in other cannabis companies and medical marijuana. In the latter category, Aurora's report suggests that the company has seen its number of registered registered cannabis patients more than double, from under 22,000 in Q2 2018 to almost 46,000 in Q3 2018. Aurora conducted several major strategic investments and acquisitions, and the company continues to expand to new facilities and to international markets. At present, Aurora is diversified geographically and primed for continued growth, so it will remain one of the best marijuana stocks to see.
