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Cannabis manufacturer Aurora Cannabis Inc. reported an increase in revenues between July and September and a "strong" sale of recreational trails from Canada, which legalized marijuana for adults last month.
The Edmonton-based company made $ 29.7 million in revenue in the first quarter of the fiscal year 2019, more than three times as much as US $ 8.2 million in the same period ending September 30 last year.
Aurora's latest results did not include the sale of recreational cannabis after Canada approved an adult pot on December 17, but its chief executive, Terry Booth, said the company's initial enforcement has so far been "a success." The company said that Aurora is one of the best-selling products and brands in many provinces that it has taken over for supply.
"Our initial success is proving … our readiness for logistics challenges in more efficient marketing of our products," he said in a statement. "Given the vastly unmet consumer demand that is apparent across Canada, we are confident that our rapidly growing production capacity will lead to further growth in revenue growth."
Aurora Cannabis announced a quarterly profit of $ 104.2 million, nearly $ 3.6 million a year ago, as a result of unrealized non-monetary gain on derivatives and marketable securities.
The average net sales price in the quarter amounted to EUR 9.19 per gram, which is 12 percent more than a year ago, which increased with the sale of sold cannabis extracts.
The analysis of the performance of companies from marijuana is difficult due to the accounting rules used in the agricultural industry, which require companies to value their pot plants before their production, with manufacturers differing on how these guidelines are to be applied.
By legalizing cannabis on October 17th – which would make Canada the second country in the world after Uruguay, a highly anticipated new market for the pot will finally be opened, and those plants and crops destined for these customers will begin to translate into the concrete as well.
However, the initial introduction of adult use in Canada was in difficulty, including the lack of products in many markets, as demand exceeded supply. Some government entities that are responsible for the sale and distribution of recreational cannabis in different regions have declared that they receive less product than expected and warned that the shortage may last several months.
Aurora found that revenues for the final quarter include about $ 600,000 from the original shipments received in the provinces in the last days of September before the regulation of recreational marijuana in Canada on October 17th.
The company added that in the three months ending September 30, the company then achieved "significant progress in increasing production capacity, including the acceptance of various sales and production licenses."
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