Aurora Cannabis was the first of several marijuana stocks to report quarterly results this week and boy, did they deliver.
The Canadian marijuana company reported that earnings had soared 2,800% after producing 11,000 pounds of marijuana in just three months. Earnings hit CA$104.2 million while revenue hit CA$29.7 million.
Gross margin on marijuana increased 12 percent compared with the first quarter of 2019 and is now at 70 percent.
Canada’s Cannabis Act took effect in October and the company had completed its first shipments to adult-use wholesalers just prior to the end of the current quarter.
“We continue to successfully execute our differentiated and diversified strategy committed towards domestic and international expansion in the medical cannabis market, adult consumer use sales, production scale-up, innovation, plant and medical research, and product development,” said Terry Booth, Aurora’s CEO.
He added, “Given the strong unmet consumer demand evident across Canada, we are confident that our rapidly increasing production capacity will result in continued acceleration of revenue growth.”
“The commencement of adult consumer use sales in Canada has been very successful for Aurora, with strong performance across all product categories and brands,” Booth also said.
The company launched Aurora Cloud in the first fiscal quarter of 2019, making it the first licensed producer supplying a vape-ready CBD oil cartridge to the market.
Competitor Tilray is expected to report on Tuesday along with Cronos Group and Canopy Growth will report their earnings on Wednesday.
Disclaimer: We have no position in Aurora Cannabis Inc. (NYSE: ACB) and have not been compensated for this article.