Shares of Aurora Cannabis Inc (NYSE:ACB) (TSX:ACB) nudged slightly higher in Tuesday’s pre-market session after the Canadian cannabis giant announced that its fiscal second-quarter revenue is set to be fairly robust.
In a statement, the company said it expects revenue of C$50 million to C$55 million (net of excise taxes), compared to $11.7 million for the corresponding quarter in the prior year and $29.7 million for the fiscal first quarter ended September 30.
Revenue growth for the quarter was driven by the company’s strong position in Canada's adult-use cannabis market, continued shipments of medical cannabis to Aurora’s expanding base of about 71,000 patients in Canada, and relatively stable, supply restricted shipments to its growing international markets, the company noted.
“Going forward, we see sustained strong demand from the adult usage market, as evidenced by public statements from the Canadian provinces, as well as strong patient-driven demand for medical cannabis in Canada and abroad,” said Terry Booth, Aurora CEO in a statement. “These factors, together with our focus on disciplined management of operating expenses, and our growing portfolio of higher margin products, put us in a position to rapidly achieve positive EBITDA within the next two quarters."
Aurora has lifted its production capacity to about 100,000 kg per year from 70,000 kg. The company still expects to report at least 150,000 kg per year of production capacity by its fiscal third quarter.
The introduction of higher-margin products, such as softgels, as well as the vape-ready CBD oil cartridge product Aurora Cloud, are also set to boost margins during fiscal 2019.
Aurora’s results for the second quarter will be put out on February 11 before the market opens.
Based in Edmonton, Canada, Aurora Cannabis is one of the world’s biggest cannabis companies and boasts operations in 22 countries.
Aurora shares jumped by 1.1% to $5.32 in New York before the opening bell on Tuesday.
Contact Ellen Kelleher at [email protected]