Home Cannabis Aurora Cannabis Increased Its Production Capacity

Aurora Cannabis Increased Its Production Capacity

Increased production and sales

In the second quarter, Aurora Cannabis (ACB) saw a significant increase sequentially in the kilograms produced to 7,822 kilograms from 4,996 kilograms. The increased production also translated into an increase in kilograms sold, which grew to 6,999 kilograms from 2,676 kilograms.

Kilograms Produced and Sold 2019-02-11

Increased capacity

An increase in the production and kilograms sold wouldn’t be possible without an increase in capacity. The higher capacity helped the company sell more, which translated into increased revenues. What’s taking place in terms of capacity expansion is critical for investors because it shows the company’s future sales growth.

Outlook

In a press release, Aurora Cannabis said, “The most significant driver of Aurora’s revenue growth over the next twelve to eighteen months is the Company’s scale-up of high-quality production available for sale to the Canadian consumer market and the Canadian and international medical markets” By March, the company expects to reach 150,000 kilograms in production capacity from 120,000 kilograms at the time of this update. Eventually, the company expects the increase to lower the company’s cash cost of production.

Net sales

Increased production and related costs caused Aurora Cannabis to report a net loss despite a growth in sales. During the quarter, the company reported a net loss of 237 million Canadian dollars—compared to net gains of 105 million Canadian dollars in the previous quarter.

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Later this week, peers (HMMJ) Canopy Growth (WEED) and Tilray (TLRY) are expected to report their earnings. To learn more, read What to Expect from Canopy Growth’s Q3 Earnings.

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