Canadian Marijuana Producer Aurora Cannabis (ACB) reported last quarter sales that entered the peak of an earlier forecast, even as the company's losses ballooned. The Aurora Cannabis stock and other marijuana shares were mostly lower after Monday's proximity.
Aurora Cannabis Earnings
Estimates: No estimates were available from Zacks Investment Research. Last year, the company expects net sales of $ 50 million to $ 55 million. The forecast fell out of some estimates. But these results would represent an almost 330% gain from a year ago and more than 68% over the previous quarter.
Results: The company reported net sales of Canadian $ 54,178 million, up 83% from the previous quarter and a 363% jump from the period a year ago. The company's losses are attributed to common shareholders balloon to $ 237.8 million.
The company said the sales gain came from its strong development in Canada's recreational market. The company sold 21.6 million Canadian dollars of recreational grass in the quarter. Aurora said it believed that the products accounted for about one-fifth of Canada's recreational sales in the quarter.
"The company expects the launch of new derivative product lines, once permitted under the Health Canada regulations, to help improve margins," it said in a release.
Medical sales in Canada and internationally came in at 26 million Canadian dollars.
But Aurora said the gross margins on cannabis sales "temporarily" fell in the quarter to 54%, from 70% in the first quarter. The company attributed the drop to a lower average sales price, handling fee, and a lower mix of cannabis oil sales.
Packaging groups and costs related to bringing their massive Sky plant to full production are also reduced. The company said the cash cost of getting a gram of dried buds temporarily increased to 1.92 Canadian dollars, from 1.45 in the quarter.
Aurora said it produced 7,822 kilos of cannabis in the quarter and sold 6,999, as it brings more of its
Aurora Cannabis Stock, Andre Marijuana Stocks
Aurora Cannabis Stock lost 1.1% on the stock market today. The company has a composite rating of 97 of the best possible 99. It is the strongest showing of US listed Canadian marijuana shares.
The Aurora Cannabis share has a strong Relative Strength Rating of 91. The rating measures stock performance over the past 12 months.
Among other things, marijuana shares, Canopy Growth (CGC), which reports income on Thursday, was flat after closing the clock. Cronos Group (CGC) fell 1.2%. Cronos has a 85 Composite Rating.
Tilray (TLRY) was flat. Aprhia (APHA) doubled 0.4%.
A Look At The Recreational Cannabis Market
Aurora has driven financial results higher in previous months, partly through large acquisitions and investments. The company's fiscal second quarter includes the three months ended 31 December. Legal recreational marijuana sales in Canada began on October 17.
Canaccord Genuitet Analyst Matt Bottomley said the results from Aurora and Canopy would give investors their "first real look" at the sales potential of the nation's largest licensed miners.
Investors in recent months have raised several questions about this potential. Canada's largest producers lose money as they try to expand to other nations and increase production capacity. Deficiencies in the nation's supply of recreational grass have forced some dispensers to close until they can get more supplies. Products such as vaping devices and edibles, which have become more popular, will not be available until later this year.
In November, Aurora Cannabis said it invested in a "significant number" of marketing efforts to raise awareness of its recreational products. Survey results from GMP Securities in October indicated that few people were aware of the different products offered by Canada's pot producers.
Total legal sales of dry buds in December increased by 4% from November, according to Canadian government data released last month. Cannabis oil sales rose 2% during that time. Statistics Canada also indicated that the degree of cannabis use had not changed since legalization.
Next episode of the marijuana industry Sh * tshow
Aurora CEO Terry Booth, at a conference in November, said Canada's legal recreational market would likely remain a "sh * tshow". And he said Ontario, Canada's most populous province, handled rollout the worst. Business executives expect the deficiencies to last for at least this year.
Ontario began its recreational market through an online government circuit. The province recently awarded the first 25 physical retail licenses via a lottery system.
Managers from Aurora and Canada's other manufacturers have said that the longer term opportunity lies in selling medical marijuana to other nations that have legalized it. 19659006] On Monday, Aurora said it had made its first commercial export of cannabis oil to the UK. The company said the product "has been dispensed from a pharmacy."
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