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Aurora Cannabi's revenue shows great growth in pot sales, but alarming profit development

Aurora Cannabis Inc. celebrated almost its revenues and claimed a strong market share in a monthly earnings report describing the…

Aurora Cannabis Inc. celebrated almost its revenues and claimed a strong market share in a monthly earnings report describing the first quarter of legal leisure sales in Canada, but also showed large losses and a shrinking margin.




ACB, -4.52%

reported losses of 237.8 million CZ on net revenue of 54.2 million CZ after reporting one profit of 7.7 million CSE on sales of approximately 1

1.7 million a year ago. Major losses were expected due to a decline in marijuana-related stocks in the quarter, as Aurora invested heavily in other companies in the industry and has to track its performance as part of its performance – Aurora said these adjustments accounted for about $ 190 million of its losses.

The results reflect the launch of legal marijuana sales in Canada, the first industrialized nation that enables pot sales to be nationwide. Aurora claimed a large market share for Canada during the launch quarter, with $ 21.6 million of its revenue from its home country.

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“Based on available data published by Health Canada during the period Q2 2019, Aurora accounted for about 20% of all consumer sales across the country, “said Aurora in her announcement.

In January, Aurora announced the expected revenue of $ 50 million to $ 55 million, deducting excise duty. Not enough analysts cover the company for a worthy consensus estimate. Aurora shares rebounded in late trading, but showed mostly small gains of less than 2% after the figures were released.

Aurora’s shrinkage margin may be more worrying than the stock-affected quarterly loss. Aurora said the gross margin on cannabis sales fell to 54% from 70% during the quarter and 63% for the quarter ago. Aurora stuck to its goal of showing adjusted profits in the fourth quarter, saying that the margin change should be temporary.

“The decrease [in gross margin] was mainly due to a lower average selling price per gram of dried cannabis, the effects of excise duty on medical cannabis net income and a temporarily lower proportion of cannabis oil sales in the company’s sales relationship. Also, gross margin margin was increased packaging requirements under the Cannabis Act and one-off optimization costs and optimization costs. When our Sky plant was taken up for full production, Aurora says in its announcement of a marijuana plant. “The company anticipates that the launch of new derivative product lines, once permitted under the Health Canada rules, will help improve margins.” [19659002] Marijuana stocks to look at: Aurora Cannabi’s investments may be more valuable than the pot

Previously, Aurora increased its profits through its extensive investments in other marijuana-related companies, but a downturn steam in the pot stock at the end of last year was expected to hit the bottom of the report in the report. It has not stopped Aurora from continuing to invest, including acquiring a medical marijuana distributor in Mexico and investing in High Tide Inc. last year, and announcing the purchase of one of the last independent members of the so-called “blessed eight” in January.

The company announced Monday morning that it had sent its first cannabis oil to the UK. Aurora has previously said that it sends marijuana to more than 20 countries.

The stock of potatoes was to a large extent lower Monday before Auror’s profit distribution. Canopy Growth Corp.

CGC, -5.56%

WEED, -5.06%

stocks fell 5.6%, Cronos Group Inc.

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