Aurora Cannabis strong after earnings report

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The company released its earnings report this week and things look good

Aurora Cannabis published its earnings report for the most recent quarter this week and the company seems to be on track with its goals. It reported solid sales growth that averaged about 20% across all of its major markets, and is preparing for an even brighter future. The news was welcomed by investors, and the stock initially rose 3.6%. It has settled somewhat since and, as of this writing, is trading even or slightly up.

Aurora’s improvement was seen from a successful scale-up of the company’s production and strong results across Canadian and international markets. The Canadian consumer segment rose 37%, while the medical segment increased by 8%. Aurora’s international segment grew 40%.

Aurora CEO Terry Booth stated, “I’m exceptionally proud of our company and team as Aurora continues to deliver on our domestic and international growth strategy. 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. During the quarter, we formally welcomed Nelson Peltz a key strategic advisor. He has been incredibly engaged, collaborative, and strategically focused on assisting our pursuit of growth in global markets and with mature companies in adjacent industries.”

In addition, Aurora enjoyed a per-gram reduction in cost of 26% quarter-over-quarter. This was due to the scale and efficiency of its new Aurora Sky facility and the company indicated that its production volume increased 99%, or 1,200 year-over-year, to 15,590kgs, most of which was realized in the second half of the quarter.

Glen Ibbott, Aurora’s chief finance officer, added, “Aurora is an extremely active and diversified company, leading the industry in cannabis research, product development, cultivation, global scale, and revenue growth. With a solid Q3 on all fronts, it’s time to move the yardsticks for the industry again. The company we have built with purpose through both organic growth and targeted acquisitions has provided a unique opportunity: continue to lead the industry in revenue growth while also progressing to positive operating earnings in the near term.”