Shares of Aurora Cannabis Inc. (TSE:ACB) have soared more than 129% year to date following the release of Q1 financial results
SmallCapPower | November 13, 2017: Aurora Cannabis Inc. (TSX:ACB) shares have surged more than 34% to its current price of $5.27, after the cannabis producer announced its financial and operational results for the first quarter of fiscal 2018, ended September 30, 2017, on Thursday. Overall it was a positive quarter with significant growth in Revenue, Gross Profit and Net Income along with the reduction in production costs.
Revenues for the first quarter of fiscal 2018 were $8.2 million, up 169% from the same quarter in the prior year and up 39% from the previous quarter. Revenue growth was achieved across all of the Company’s product lines and territories, driven predominantly by strong growth in Canadian cannabis oil sales, sales in Germany, and an increase in the average price per gram of product sold. The average price of product sold increased by 10% to $8.22 per gram, attributable mainly to strong increases in cannabis oils sold and sales through Pedanios in Germany. Another highlight of the quarter is the significant reduction in the production cost by 9% to $1.73. Total grams sold increased 18%, which was driven mainly by increased cannabis oil sales.
Gross profit increased by 51% as compared to the previous quarter, attributable to the increase in the gain on the effect of changes in fair value of biological assets and increase in revenues. Net income came in at $3.6 million for the quarter as compared to the previous quarter net loss of $4.8 million. The increase was due predominantly to higher revenues, an unrealized gain on the change in fair value of biological assets, as well as an unrealized gain on the $2.0 million Radient Technologies debenture Aurora Cannabis invested in as part of its strategic collaboration.
During the past three months, Aurora Cannabis shares have surged more than 90% given the increased investor activity in the cannabis space as the legalization date in Canada is fast approaching. Aurora Cannabis currently trades at a high Price to Sales ratio of 102.3x.
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.
To read our full disclosure, please click on the button below: