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