Aurora Cannabis Inc. (TSE:ACB) saw its fiscal 2017 revenue balloon and is executing upon a significant international expansion
SmallCapPower | October 3, 2017: Aurora Cannabis Inc. (TSX: ACB) announced recently its fiscal 2017 financial and operational results, which paints a picture of a cannabis producer vying to become the Number 1 marijuana company in Canada.
Revenues for the year ended June 30, 2017 came in at $18.1 million, as compared to $1.4 million for the prior year, attributable to growing sales of dried cannabis products and cannabis extracts (oils), as well as increased revenues from the Company’s subsidiary CanvasRx and contributions from its newly-acquired German subsidiary Pedanios. Total product sold for the year was 2,381,832 grams of dried cannabis and cannabis oils at an average selling price of $6.68 per gram. The increase in revenues also reflects an increase in the average price per gram of product sold. Net loss of $13.0 million was recorded, as compared to $5.7 million for the prior year. The increase from the previous year was attributable to greater expenditures relating to the increase in production at the Company’s Mountain View County facility, expansion of its client care centre and related sales costs resulting directly from registration of new patients, as well as acquisition and due diligence expenditures relating to the Company’s domestic and international expansion strategy.
Aurora Cannabis is poised to continue to accelerate its penetration of the Canadian medical cannabis market, leverage its Health Canada sales license for derivative products (cannabis oils), expedite the completion of the Aurora’s Pointe Claire facility in Quebec, and complete the Aurora Sky facility in Alberta for additional production capacity. Aurora Cannabis is also gearing up for the anticipated mid-2018 Canadian federal legalization of adult consumer use of cannabis, and is building organizational and production capacity to capture a significant share of the adult-use market.
The extent to which Aurora Cannabis is trying to become a marijuana market leader can also be seen in Monday’s announcement of the completion of the BC Northern Lights Enterprises and Urban Cultivator acquisitions, which is expected to generate more than $5 million in revenues in their current fiscal year, ending October 31, 2017. These transactions illustrate the willingness of Aurora Cannabis to serve the home gardening market in Canada for patients who choose to grow their own medical cannabis.
Finally, Aurora Cannabis is executing upon a significant international expansion, as evidenced by the lead participation in the May 2017 Cann Group IPO in Australia, and the May 2017 acquisition of Pedanios, Germany’s largest distributor of medical cannabis. The Company is actively pursuing further international opportunities.
Aurora Cannabis shares have surged more than 14% during the past month and currently trading at Price to Book ratio of 6.06x and Price to TTM Sales of 58.61.
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