Categories Cannabis, Earnings

Aurora Cannabis (NYSE: ACB) Q1 profit dips 90% but beats estimates

Aurora Cannabis Inc. (NYSE: ACB) reported a 154% jump in revenues for the first quarter of 2020 helped by higher cannabis production and sales. However, earnings plunged by 90% due to higher costs and expenses. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates.

Net income fell by 90% to CAD12.76 million or $0.01 per share. Revenues soared by 154% to CAD75.25 million. Net cannabis revenue surged by 188% to CAD70.78 million. On a sequential basis, revenues fell by 24% and cannabis revenue dropped by 25%.

Aurora Cannabis (ACB) Q1 2020 Earnings Review

During the quarter, Aurora produced 41,436 kilograms of cannabis compared to 29,034 kilograms in the prior quarter. The company sold 12,463 kilograms of cannabis compared to 17,793 kilograms in the third quarter of 2019. The sales reflected the continued sell-through of Aurora’s products.

Cash cost to produce per gram sold declined 25% sequentially to CAD0.85 per gram, delivering on its promised sub-one dollar per gram target KPI.

The average net selling price of cannabis increased by $0.36 per gram over the prior quarter to $5.68 in Q1 2020. This was driven by the higher average net selling price of consumer cannabis coupled with a decrease in sales volumes to the bulk wholesale markets which yield lower average net selling prices as compared to the consumer and medical markets.

In the first quarter, the number of total active registered patients with Aurora increased by 8% to 91,116. This represented patient loyalty to the Aurora family of brands. The company believes that its long-term opportunity in the global cannabis and cannabinoids market is immense despite short term distribution and regulatory headwinds in Canada.

Read: Canopy Growth Q2 earnings review

Further, the company has decided to strengthen its balance sheet by planning to settle its 5% convertible debentures due March 2020. It also includes a reduction in its capital investments over the next several quarters by over CAD190 million and raising over US$124 million in gross equity proceeds since the start of fiscal 2020 through at-the-market financing program.

In an effort to expand responsibly in line with global demand, the company has made the decision to immediately cease construction activity at its Aurora Nordic 2 facility in Denmark, which is expected to save about CAD80 million over the next 12 months.

The implementation of Cannabis 2.0 remains the most important market opportunity for the Company in Canada. Aurora expects to begin shipping new product formats to provincial regulators starting late December 2019. Aurora is evaluating a number of potential accretive alternatives for expanding its operating footprint in the US.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Earnings Preview: What to look for when Broadcom (AVGO) reports Q1 results

Broadcom, Inc. (NASDAQ: AVGO) will be releasing its first-quarter results next week. Over the years, the company constantly broadened its portfolio beyond semiconductors to areas like enterprise software solutions, a

Here’s a look at Lowe’s (LOW) expectations for the near term and ahead

Shares of Lowe’s Companies, Inc. (NYSE: LOW) were up over 1% on Friday. The stock has gained 19% over the past three months. The home improvement retailer saw sales and

TJX Companies (TJX) Q4 2024 profit jumps on strong revenue growth

The TJX Companies, Inc. (NYSE: TJX) has reported a double-digit increase in net income for the fourth quarter of 2024 when the fashion retailer's net sales grew 13%. Fourth-quarter sales

Comments

  1. Pingback: Leandro Farland
  2. Pingback: GPA Calculation
  3. Pingback: Local society
  4. Pingback: Immunizations
  5. Pingback: Dental Seminars
  6. Pingback: Dental implants
  7. Pingback: Prof. Ebada Sarhan
  8. Pingback: fue
  9. Pingback: fue phone number
  10. Pingback: Dental clinic
  11. Pingback: Credit Hour System
  12. Pingback: Data Science
  13. Pingback: computer science
  14. Pingback: Character building
  15. Pingback: faculty of dental
  16. Pingback: binario led
  17. Pingback: seated dips
  18. Pingback: calisthenics
  19. Pingback: Fiverr Earn
  20. Pingback: Fiverr Earn
  21. Pingback: Fiverr Earn
  22. Pingback: fiverrearn.com
  23. Pingback: fiverrearn.com
  24. Pingback: fiverrearn.com
  25. Pingback: fiverrearn.com
  26. Pingback: flatbed broker
  27. Pingback: prodentim buy
  28. Pingback: weather today
  29. Pingback: fiverrearn.com
  30. Pingback: fiverrearn.com
  31. Pingback: cavapoo dog
  32. Pingback: phone repair
  33. Pingback: best Phone
  34. Pingback: future university
  35. Pingback: future university
  36. Pingback: wix marketplace
  37. Pingback: Fiverr
  38. Pingback: Fiverr.Com
  39. Pingback: FUE
  40. Pingback: FUE
  41. Pingback: FUE
  42. Pingback: FUE
  43. Pingback: Classic Books 500
  44. Pingback: Speaker
  45. Pingback: FiverrEarn
  46. Pingback: partners
  47. Pingback: FiverrEarn
  48. Pingback: FiverrEarn
  49. Pingback: live sex cams
  50. Pingback: live sex cams
  51. Pingback: FiverrEarn
  52. Pingback: FiverrEarn
  53. Pingback: FiverrEarn
  54. Pingback: FiverrEarn
  55. Pingback: FiverrEarn
  56. Pingback: FiverrEarn
  57. Pingback: Milk
  58. Pingback: graphic design
  59. Pingback: Slot Gacor
  60. Pingback: Kuliah Termurah
  61. Pingback: FiverrEarn
  62. Pingback: FiverrEarn
  63. Pingback: FiverrEarn
  64. Pingback: cheap sex cams
  65. Pingback: fullersears.com
  66. Pingback: fullersears.com
  67. Pingback: fullersears.com
  68. Pingback: frt trigger
  69. Pingback: 늑대닷컴

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top