One of the country’s largest licenced producers of cannabis, Aurora, has released their Q3 financial reports for 2019, and while the company fell below some expectations, they still posted a strong statement for the three month period.
The Canadian cannabis giant came in at a loss — and reportedly higher than analysts had predicted — after they had to reevaluate their share prices, counting for an over $101 million deficit. This news, however, isn’t as bad as it seems. The company reduced its losses by over 30% compared to last year and increased revenues by 20% over the same period of time.
“I’m exceptionally proud of our company and team as Aurora continues to deliver on our domestic and international growth strategy,” said Terry Booth, Aurora’s CEO. “We achieved solid revenue growth and strong operating results in a quarter proven challenging across the industry. We are laser focused on building a long-term sustainable business.”
The company also reports that with their newest production facility, Aurora Sky, coming online, they have managed to increase overall yields and reduce the cost of their products. According to their report, the cost of cannabis production per gram declined by 26% to $1.42 per gram, while the selling price dropped 6% from $6.80 to $6.40.
The amount of flower production has increased by 99% to 15,590 kg since Q2 in 2019, up 1,200% when compared to Q3 2018. Aurora says in a release that the majority of the harvested volume was done “in the last half of the quarter.”
Compared to Q2 of this year, Aurora also managed to increase their totals of medical patients. The company says that, to date, they have 82,745 active registered patients, an increase of 7% compared to previous totals.
“Aurora is an extremely active and diversified company, leading the industry in cannabis research, product development, cultivation, global scale, and revenue growth. With a solid Q3 on all fronts, it’s time to move the yardsticks for the industry again,” said CFO Glen Ibbott. “The company we have built with purpose through both organic growth and targeted acquisitions has provided a unique opportunity: continue to lead the industry in revenue growth while also progressing to positive operating earnings in the near term.”