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- Cannabis producer Aurora Cannabis beat on the top line.
- The company said its margins were lower than rising production costs and falling prices.
- He reiterated his willingness to achieve a positive EBITDA as of the second quarter of the 2019 calendar year (his fourth quarter of fiscal year).
- Watch the live Aurora cannabis trade.
Cannabis producer Aurora Cannabis fell 2.51% to $ 6.99 per share on Tuesday, after posting lower margins in the second quarter, as production costs rose and prices fell.
The company said Monday it generated sales of C $ 54.2 million ($ 40.9 million), an increase of 363% over the previous year. Analysts surveyed by Bloomberg were forecasting C $ 52.6 million ($ 39.7 million).
However, the gross margin increased from 70% to 70% on a quarterly basis, mainly due to a lower average selling price per gram of cannabis, higher packaging costs and the impact of taxes. excise tax on cannabis income for medical purposes. As a result, the company lost 238 million Canadian dollars ($ 180 million) during the quarter.
"Our brands continue to resonate extremely well in the consumer market, the number of our patients continues to grow steadily and we have maintained our leadership in the German and other key international markets," said CEO Terry Booth. in a press release. "We are experiencing exceptional demand for our Canadian medical and consumer products, as well as sustained strong demand internationally."
In the future, the company has reiterated its forecast to achieve positive EBITDA as of the second quarter of the 2019 calendar year (its fourth quarter of fiscal year).
Aurora went public on the New York Stock Exchange in October, following the official legalization of marijuana for recreational purposes in Canada. Since then, it has intensified its expansion into the US market, where the regulatory framework has become more favorable for marijuana growers.
On January 14, less than a month after the adoption of the Farm Bill, which legalized hemp, a popular ingredient source, cannabidiol, Aurora told Business Insider that it planned to produce CBD derived from hemp for the US market in the coming months.
The stock is very popular among the millennials. Since the week before February 1, Aurora has outsold all other titles, including Apple on Robinhood, a free trading app popular among young investors, in terms of number of shareholders.
Aurora is up 45% so far this year.
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