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Aurora Cannabis saw "strong demand" for recreational pies during the first weeks of legalization in Canada and it is expected that consumer appetite continues to exceed the supply for "some time".
The Edmonton-based pot manufacturer was able to meet "almost all" their delivery obligations until and after the adult-grown pot was legitimized on October 17, but it will take time to raise its cannabis production in the coming quarter, "said Cam Battley, Aurora's chief jurist.
"We have been uncomfortable in provinces that have not been able to achieve sufficient asset," he told a conference call with financial analysts discussing the company's latest financial results.
"We think we've done better than other companies, our comrades. We're going to fall, we'll be able to get some of the battle soon, but we can not do that immediately."
Cannabis producer comments came as reported results for the three months ending 30 September. In the first quarter of the financial year 2019, revenue of $ 29.7 million, more than triple of $ 8.2 million in the same period last year, yielded. It also showed a profit of $ 104.2 million, an increase of almost $ 3.6 million a year ago, which increased by an unrealized non-cash gain on derivatives and marketable securities.
The average net sales price was $ 9.19 per gram in the quarter, an increase of 12 percent compared to a year ago, which was due to an increase in cannabis extracts sold.
Analyzing the performance of marijuana companies is difficult due to accounting rules used in the agricultural industry that require companies to value their potted plants before harvesting and the methods differ between the producers on how to apply these guidelines.
With the legalization of recreational cannabis on October 17, Canada makes the second country in the world after Uruguay has done it – the market for pot has opened.
The unwrapping of the use of adult pots in Canada has been plagued with problems including product shortages in many markets, as demand has exceeded supply. Some government entities that are tasked with selling and distributing recreational ads in different provinces have said they get less product than expected and have warned for the shortcomings may be for months.
Aurora's results did not include recreational cannabis sales after legalization, but management gave some initial insights on how the rollout has gone.
Although not all provinces and territories reported information on cannabis sales, Aurora said that the market for adult use for the company so far has been a success, with its products ranked among the best-selling products and brands in many of the provinces it committed to supply.
Alcanna Inc., which operates five Nova Cannabis stores in Alberta and where Aurora has a 25 percent stake, saw $ 3.7 million in sales during the first 19 days, said Battley Monday.
Aurora noted revenue for the last quarter, including approximately $ 600,000, from its initial shipments received by the provinces during the last days of September prior to legalization.
The company added that during the three months ending September 30 and thereafter, the company made significant progress towards increasing its production capacity, including receipt of various sales and production licenses.
"Like other Canadian LPs, we face demand that exceeds supply," says Battley. "We anticipate this dynamic to continue for some time. However, we quickly and quickly increase our capacity and increase product availability."
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