Canadian Marijuana Manufacturer Aurora Cannabis (ACB) reported fiscal sales in the second quarter, which were at the upper end of a previous forecast, although the company's losses increased. Aurora cannabis and other marijuana stocks were mostly lower after the close of Monday.
Result from Aurora Cannabis
Estimates: Zack Investment Research estimates were not available. Last month, the company forecasted net sales of $ 50 million to $ 55 million. The forecast lagged behind some estimates. However, these results would represent an increase of almost 330% over the previous year and an increase of more than 68% compared to the previous quarter.
Results: The company achieved net sales of $ 54.178 million, up 83% from the previous quarter and up 363% from a year ago. The loss attributable to common shareholders increased to $ 237.8 million.
The company said the sales profits came from its "strong performance" in the Canadian leisure market. The company sold $ 21.6 million of recreational cabbage during the quarter. Aurora said its products accounted for about one-fifth of Canada's leisure sales during the quarter.
"The Company expects that the introduction of new derivative product lines, once approved under Health Canada's Canadian regulations, will help improve margins," Aurora said in a publication.
Medical sales in Canada and internationally totaled $ 26 million. The company expects to sell approximately 25,000 kilograms of marijuana products in the quarter ending in June.
Costs hit Margins
However, Aurora said gross profit margins on cannabis sales in the quarter "temporarily" dropped to 54 from 70% in the first quarter of the fiscal year. The company attributed the decline to a lower average selling price, excise tax on sales and a lower mix of cannabis oil sales.
The packaging regulations and the costs associated with the full production of the huge Aurora Sky plant also broke margins. The company said the plant was fully completed and will "reach full production capacity shortly."
The company said cash for one gram of dried buds temporarily increased to $ 1.92 compared with $ 1.45 in the previous quarter. Selling, general and administrative expenses were at the level of the previous quarter. Aurora said that these costs would decrease as soon as its production facility in Aurora Sky was fully utilized.
Aurora said it produced 7,822 kilograms of cannabis during the quarter and sold 6,999 as it brings more online space to grow their homes.  Aurora Cannabis Stock, Other Marijuana Stocks
Aurora Cannabis shares lost 1.1% on the stock market today. The company has a composite rating of 97 out of a possible 99 points. This is the strongest representation of Canadian listed marijuana stocks.
The Aurora Cannabis share has a strong relative rating of 91. The rating measures the performance of a stock in the last 12 months.
Among other marijuana stocks Canopy Growth [CGC]reporting profits on Thursday, was flat after the closing bell. The Cronos Group (CGC) lost 1.2%. Cronos has a composite rating of 85.
Tilray (TLRY) was flat. Aprhia (APHA) fell 0.4%.
A Look at the Market for Recreational Cannabis
Aurora has boosted its financial performance in recent months, in part through major acquisitions and investment. The fiscal second quarter of the business covers the three months ended December 31. Legal marijuana sales in Canada began on 17 October.
Canaccord Genuity analyst Matt Bottomley said the Aurora and Canopy results would give investors their "first real look". the sales potential for the country's largest licensed weed breeders.
Investors have raised further questions about this potential in recent months. Canada's biggest producers are losing money if they try to expand into other countries and increase their production capacity. With no supply of recreational herbs in the country, some pharmacies are forced to shut down until they can get more supplies. Products such as steam products and foods that have become more popular will be available later this year.
Aurora Cannabis said in November that it has invested in a "considerable number" of marketing efforts to increase awareness of its leisure products. October survey results from GMP Securities indicated that few people knew about the different products of the Canadian pots manufacturers.
Total legal sales of dry buds increased 4% in December versus November, Canadian government data from last month showed. The sales of cannabis oil increased by 2% during this period. Statistics Canada also indicated that the rate of cannabis use has not really changed since legalization.
Next episode of marijuana industry "Sh * tshow"
Aurora boss Terry Booth said at a November conference, Canadas legal leisure business The market would likely remain a "sh * tshow". He said Ontario, Canada's most populous province, has done the worst of the rollout. Industry executives expect bottlenecks to continue at least this year.
Ontario began selling its leisure activities through an online government shop. The province recently distributed the first 25 physical retail licenses through a lottery system.
Executives from Aurora and Canada's other manufacturers have said that the greater long-term opportunity is to sell medical marijuana to other nations that have legalized it. 19659006] Aurora said on Monday it had run the first commercial export of cannabis oil to Britain. The company said the product was "successfully dispensed from a pharmacy".
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