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Aurora Cannabis has seen "strong demand" for recreational pots over the weeks that legalization has begun in Canada and expects consumer appetite to continue to exceed supply for some time.
Edmonton-based pollinators were able to meet "almost everything" of the continuing supply obligation to the adult pot on October 17, but it will take time to increase cannabis production in the next quarter, said Aurora's COO Cam Battley said.
He discussed the company's latest financial results at a conference call with financial analysts, saying, "We heard local inconvenience that we could not get enough supplies.
"We think we've done better than other companies and colleagues, we'll go up soon, and we'll soon find some room, but we can not do that right away."
The cannabis producers' remarks came out after three months of ending September 30th. During the first quarter of fiscal year 2019, the company recorded sales of $ 29.7 million, more than three times of $ 8.2 million in the same period last year. We also recorded a gain of $ 142.2 million compared to $ 3.6 million in the prior year due to higher non-cash gains on derivatives and marketable securities.
Net sales increased 12% from the previous year to US $ 9.19 on the back of an increase in average cannabis extract.
Analysis of the performance of marijuana companies is difficult because of the accounting rules used in the agriculture industry, as companies must place value on the pollen plant before harvesting, and the producer's approach to applying these guidelines is different.
With the legalization of marijuana for recreation on October 17, Canada became the world's second largest producer after Uruguay, and the pot market opened.
The use of adult pots in Canada is suffering from problems, including lack of products in many markets, as demand outpaces supply. Government agencies responsible for the sale and distribution of recreational cannabis in several states have received fewer products than expected and warned that the shortage could last for months.
The results of Aurora did not include recipe legalization of recipe cannabis, but management provided early insight into how the launch was going.
While not all states and territories provide cannabis sales details, Aurora said the company's adult market has been "successful" by far, and it is ranked among the best-selling products and brands in many states. supply.
Alcanna Inc., which operates five Nova Cannabis stores in Alberta and a 25 percent stake in Aurora, posted sales of $ 3.7 million in 19 days, Battley said on Monday.
Aurora recorded the most recent quarter's revenues, including about $ 600,000 of initial shipments from the province on the last day of September ahead of legalization.
During the three months ended September 30, the company added, "The company has made significant progress in improving its capacity, including the receipt of various sales and production licenses."
"Like other Canadian LPs, we are faced with demand that exceeds supply," Battley said. "We expect this drive to continue for the foreseeable future, but we are successfully and rapidly expanding capacity to improve product availability."
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