Aurora’s second-quarter sales came in at the high end of what had been projected, even though its losses have grown. But investors are watching the whole of the Canadian cannabis industry, still trying to gain any insights into where the nascent industry is going.
Canaccord Genuity analyst Matt Bottomley said the results from Aurora and Canopy Growth, which reports Thursday, would give investors their “first real look” at the sales potential for the nation’s biggest licensed weed growers.
Right now, reports Investor’s Business Daily, Canada’s biggest producers are losing money as they work at expanding their business reach to other nations and increase their production capacity. Yet on their home turf, shortages in Canada’s recreational supply of marijuana has forced many retail stores to close until they can get more supply.
Aurora Cannabis moves forward
Shares of Aurora Cannabis fell 1.8 percent to $7.04 on Tuesday. Aurora attributed its losses in the 2nd-quarter to investments made in other cannabis producers, while its surge in profits was attributed international medical marijuana sales and to the roll out of the legal cannabis market in October, where the company reported sales of $21.6 million.
Aurora Cannabis said it sold 6,999 kilograms of cannabis in the quarter ending December 31, accounting for 20 percent of consumer sales in Canada. The company also said it is on track to reach a sustained positive EBITDA, a measure of a company’s operating performance, in its fourth quarter.
CEO Terry Booth was happy with the way the company performed during the period. “Aurora continues to execute strongly across all of its market segments,” Booth said, according to the Motley Fool, and “our brands continue to resonate extremely well in the consumer market.”
Tilray Inc. is expected to release its fourth-quarter results on Tuesday, while Canopy Growth Corp. will issue third-quarter results on Thursday.
