Marijuana producer Aurora Cannabis has failed to meet expectations in its third quarter financial report.

The company reported revenues of C$65.2 million (US$48.44 million) in the quarter, while analyst estimates had called for C$67.5 million (US$51 million)
The company revealed that it had almost doubled production to 15,590 kg, with the majority of the volume harvested in the last part of the quarter.

Aurora Cannabis also said that between 2Q 2019 and 3Q 2019, revenue was up 20% across key markets, which is notable as it is when the company sold its first recreational cannabis in Canada.

The company also reported a net loss at $158.4 million in the third quarter, while analysts were predicting a net loss of around $52.6 million. The loss per share was C$0.16 cents, compared to average analyst estimates of $0.05 per share.

“We achieved solid revenue growth and strong operating results in a quarter proven challenging across the industry. We are laser focused on building a long-term sustainable business,” remarked CEO Terry Booth.

Chief Corporate Officer Cam Battley said on the earnings call, “Our net revenue was $65.1 million, a 20% increase over $54.2 million in the second quarter. We produced almost 16,000 kilos of cannabis, double the volume compared to the previous quarter. With Aurora Sky ramping up very successfully, our cash cost to produce per gram fell by 26% while SG&A costs were relatively flat over the same period due to disciplined cost management.”

“In the quarter, Aurora continued to be a solid performer in the Canadian consumer market with leading market share and high brand awareness. Our consumer revenue has continued to exceed our expectations. We achieved 37% growth compared to Q2.”

He added, “While increased production was a fundamental driver of growth, I think it’s important to understand how well our products perform in terms of brand resonance. An analysis of over 6,000 reviews on lift.com conducted by a covering analyst showed how well the Aurora brands perform in this respect. Two of the tip three most highly regarded brands were ours, with all our brands in the top 11. While in an undersupplied market, the ability to produce remains key. Longer term, we know the brand strength will play a key role in capturing and keeping market share. Going by these numbers, we’re very well-positioned in the consumer market.”


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