Motley Fool Digs Deeps into Aurora’s Cannabis Revenue – LPC

Aurora\'s cannabis revenue still comes mostly from the medical market, but that could change next quarter.Aurora Cannabis recently reported its cannabis revenue for its fiscal second quarter – and the numbers are revealing. Aurora was second only to Canopy Growth in sales. Net revenues were a reported $54.18 million in the second quarter (compared to $83 million in net revenue for Canopy).

However, breaking down those numbers reveals some interesting facts. First, over 90% of cannabis revenue was generated in Canada. Of the 23 other countries Aurora operates in, the European Union was the biggest market, accounting for $3.27 million in revenue. The remainder ($1.14 million) came from non-EU countries such as Australia, Mexico, and the Cayman Islands. Profits varied in these geographic locations with 62% gross profit in Canada, 35% in the EU, and 9% in non-EU countries.

Medical Sales – LPC

As expected, medical sales continue to be the greatest driver of cannabis revenue for Aurora. They accounted for 48% of sales versus 40% for recreational use. Of the medical sales, dried cannabis was the most popular with 59% of sales, while oils made up just short of 30%.

Recreational Sales – LPC

Within Canada, cannabis revenue from recreational sales were predominantly from Ontario (32%), Quebec (27%), and Alberta (20%), which accounted for almost 4 out 5 sales by dollar amount. The rest came from BC (12%), Nova Scotia (6%), and PEI (3%), with Newfoundland and Labrador, Yukon, and Northwest Territories combining for 1% of sales.

Other Revenue – LPC

Aurora reported that 12% of its cannabis revenue came from “other” sources. These include from other integrated businesses, analytical testing, and patient counselling services. Total sales from these areas amounted to $6.6 million.

What’s Next? – LPC

Motley Fool predicts recreational sales will overtake medical sales in the next quarter (see link to article below). Aurora plans to continue its expansion into international markets to become a global cannabis company. With an annual global industry worth $41.6 billion in revenue by 2022 and Aurora’s positioning within the global market, expectations are that Aurora’s cannabis revenue will continue to grow worldwide.

This editorial content from the LPC News Editor is meant to provide analysis, insight, and perspective on current news articles. To read the source article this LPC commentary is based upon, please click on the link below.

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