Aurora Cannabis (ACB) reported its earnings on May 14 after the market closed. The company delivered sequential net revenue growth of 20% to $65 million from $54 million in the previous quarter. Year-over-year, the company delivered net revenue growth of 305% from $16.1 million. However, the year-over-year figures are not comparable due to the lack of recreational cannabis legalization. Therefore, we’ll only discuss the sequential growth.
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Drivers of growth
Compared to the previous quarter, Aurora Cannabis’s sales from the Canadian recreational consumer segment grew by 37%, while its sales from the medical segment grew by only 8% sequentially. Its patient base grew 5%. Interestingly, the company was also able to deliver 40% sequential growth in sales from its international market.
During the quarter, the company sold nearly 9,160 kilograms of cannabis, a rise of 31% from 6,999 kilograms in the previous quarter. This increase demonstrates the strength in demand that investors have been looking for.
Even better, the company’s average net selling price per gram declined to $6.4 from $6.8 in the previous quarter. The selling price has been a sticking point for several cannabis players because companies must compete against lower prices in the illicit market.
After the company released its earnings, Aurora Cannabis dropped 2.1%, while the ETFMG Alternative Harvest ETF (MJ) gained about 1.8%. Tilray (TLRY), which also reported its earnings after hours, popped about 4%, and Cronos Group (CRON) gained 1% in the after-market session.