Aurora Cannabis Inc (NYSE:ACB) shares were riding high after its revenue nearly quadrupled in its fiscal first quarter, touting its ability to meet the needs of the budding Canadian recreational market.
The cannabis company’s total revenue rose 260% to US$29.67 million compared with $8.25 million a year ago.
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Shares of the Alberta-based company were up more than 3% to US$7.53 in Monday pre-market trading.
Net earnings totaled US$105.5 million, a dramatic jump from US$3.6 million in last year’s first quarter.
"The commencement of adult consumer use sales in Canada has been very successful for Aurora, with strong performance across all product categories and brands,” said CEO Terry Booth in the company’s press release.
Cannabis revenue, comprised of revenues from both medical and adult-use markets, was close to quadrupling as well, increasing to US$24.59 million compared with US$7.31 million last year.
The number of active registered patients rose 250% to 67,484 in the first quarter.
“Our initial roll-out success demonstrates how our high-quality Aurora Standard products and well-positioned brands have resonated strongly with the consumer market and our preparedness for the logistical challenges in effectively bringing our products to market,” added Booth.
The average selling price per gram of dried cannabis was up 15% to US$8.39, while the cash cost per gram was down 12% to US$1.90.
The net selling price per gram of cannabis extracts was down 26% to US$12.12 with costs declining 22% to US$1.45.
For the year ahead, the company said it will focus on expanding its capacity. Its newly-licensed Aurora Sky facility is expected to reach a production run rate of 150,000 kg per year by early calendar year 2019, scaling up to more than 500,000 kg per year.
Contact Lenore Fedow at lenore@proactiveinvestors.com
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