Aurora Cannabis Inc. it almost quadrupled its revenue and claimed a strong share of the market in a Monday earnings report detailing the first quarter of legal pottery sales in Canada, but also showed huge losses and a contraction margin.
ACB announced, -4.52%
losses C $ 237.8 million in net income of C $ 54.2 million, after reporting profit which is C $ 7.7 million in sales of C $ 1
The results reflect the launch of legal marijuana sales in Canada, the first industrialized country to allow pottery sales nationwide. Aurora said a large part of the market for Canada in the launch quarter, with $ 21.6 million in revenue from its home country.
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"Based on available data released by Health Canada for the Q2 2019 period, Aurora earns around 20% of all sales of buyers nationwide, "Aurora said in a statement.
Aurora announced in January that it expects C $ 50 million to C $ 55 million revenue, net of excise taxes. Not enough analysts cover the company for a worthy estimated estimate. The share of the Aurora returns to the split trade, but most show little gains less than 2% after its numbers are released.
Aurora's margin increase may be more worrying than the stock's influence on quarterly losses. Aurora said the gross margin in cannabis sales dropped to 54% from 70% in the previous quarter and 63% last year. However, Aurora has fallen in the aim of showing a revised income in the fourth quarter of the fiscal quarter, saying that margin change should be temporary.
"The decrease of [in gross margin] was due to a lower average selling price per gram of dry cannabis, the effect of excise taxes on medical net income cannabis, and a temporary lower proportion of cannabis oil sales at the company's sales mix ratio As well as the impact of the gross margin has increased the processing requirements under the Cannabis Act and one-time ramp-up and optimization costs while enlarged our Sky facility is in full production, "Aurora said in its statement, referring to the marijuana facility. "The company expects that the launch of new product derivative lines, once permitted under the regulation of Health Canada, will help improve margins."
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At first, Aurora's revenues were boosted by many investments in other marijuana-related companies, but the drop in pot stocks at the end of last year is expected to hit the company's bottom line in this report. It did not stop Aurora from continuing to invest, including hiring a medical-marijuana distributor in Mexico and investing in High Tide Inc. last year, as well as announcing the purchase of one of the last independent members of the so-called "blessed eight" in January.
The company announced Monday morning that it had sent the first cannabis oil to the United Kingdom. Aurora had previously said it was sending marijuana to more than 20 countries.
Stocks of rice are much lower on Mondays before the release of Aurora's revenue. Canopy Growth Corp.
stock fell 5.6%, Cronos Group Inc.
stock fell 0.6%, at Tilray Inc.
shares dropped by 4.8%. ETFMG Alternative Harvest ETF
tracking a basket of pot stocks, fell 2.3%, and the Horizons Marijuana Life Sciences Index ETF