Aurora Cannabis churns out 11,000 pounds of weed in 3 months, causing stocks to skyrocket 2,800 percent

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Aurora Cannabis churns out 11,000 pounds of weed in 3 months, causing stocks to skyrocket 2,800 percent

Bethan Rose Jenkins, Cannabis News Writer/Editorial

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Canadian cannabis company Aurora cannabis has revealed how legal weed sales revenue soared 260 percent over the last year.

Production also swelled to meet a rise in demand, with the company yielding a whopping 4,996 kilograms of cannabis. That’s the equivalent of 11,000 pounds. Compared to the 1,010 kg grown by Aurora last year, the figures demonstrate a 400 percent increase.

Common shareholder earnings also climbed, quite drastically. Total earnings increased to CAD $104.2 million, while the overall revenue swelled to CAD $29.7 million.

Shares of the Canadian-traded Aurora have doubled in the last year, while shares of the U.S.-traded Aurora slipped 3.8 percent. The company started trading on the New York Stock Exchange (NYSE) on October 23.

Aurora cannabis’ gross margin on cannabis reaches 70 percent

Aurora has revealed how the company’s gross margin on cannabis products increased 12 percent year-over-year. Now, it’s at 70 percent.

What steered the surge in Aurora’s gross margin? There are two primary factors that have likely influenced the changes: a higher selling price of dried cannabis, or average per gram price, and an increased share of cannabis oil sales.

The amount of money required to produce a single gram of cannabis sunk 22.5 percent year-by-year and slipped by a further 14.7 percent from the previous quarter. Why? Likely because of the maximized efficiency of Aurora’s production machinery deployed at its many subsidiaries.

With Aurora debuting on the NYSE less than a week after Canada’s Cannabis Act went into effect on Oct. 17, 2018, the company has seen a lot of action this year. Before the end of the current quarter, the Canadian cannabis company finalized its initial shipments to adult-use cannabis wholesalers. It raked in $0.6 million in adult-use weed sales as it did so.

“We continue to successfully execute our differentiated and diversified strategy committed towards domestic and international expansion in the medical cannabis market, adult consumer use sales, production scale-up, innovation, plant, and medical research, and product development,” said the CEO of Aurora, Terry Booth. “Given the strong unmet consumer demand evident across Canada, we are confident that our rapidly increasing production capacity will result in continued acceleration of revenue growth.”

Aurora noticed a slight drop in the price per gram of its dry plant matter and extracted oils, reducing from CA$9.20 to CA$9.19. The amount of dried cannabis and oils the company sold in the quarter (2,676 kilograms or 5,900 pounds) were at a 201 percent incline when compared with data from the same time last year.

Aurora Cannabis secures deals that bolster its value 

You’ve only got to look at the numbers to see that Aurora is dominating the legal cannabis sphere. In addition to the raw financial figures we’ve just pondered over, the company is preparing to present Aurora Cloud to the cannabis community in the first fiscal quarter of 2019. By doing so, Aurora will go down in history as the first ever licensed cannabis producer in Canada to present the market with a CBD oil cartridge that is vape-ready.

What’s more, Aurora concluded its acquisition of research and development-focused cannabis producer MedReleaf under their wide umbrella of acquisitions. The Canadian cannabis company’s total funded capacity soars in excess of 500,000kg, annually.

Altogether, Aurora owns and operates two production facilities, of which have received certification from the European Union’s good manufacturing practice, (GMP).