Aurora Cannabis (NYSE: ACB) has issued an expected revenue range for the second quarter of fiscal 2019. The company will report full financial results next month.
For the period ended December 31, 2018, the company expects revenues of between $50 million and $55 million net of excise taxes, significantly up from $11.7 million for the same quarter in 2018. The results reflect an anticipated revenue growth rate in excess of 327% compared to the second quarter of 2018 and in excess of 68% compared to the first quarter of 2019.
Aurora said that revenue growth for the quarter is attributed to the company’s strong position in the adult consumer use market in Canada, continued shipments of medical cannabis to its expanding base of approximately 71,000 patients in Canada, and relatively stable, supply restricted shipments, to its growing international markets.
The company continues to ramp its production capacity up from 70,000 kg/annum to approximately 100,000 kg / annum and reaffirms its expectation to achieve at least 150,000 kg/annum of production capacity within the first calendar quarter of 2019.
Based on its current production capacity of 100,000 kg/annum and its cultivation and harvest schedules, Aurora expects its production available for sale will be approximately 25,000 kg equivalent of cannabis in the fourth quarter ending June 30, 2019.
“The market introduction of higher-margin products, such as softgels, as well as its vape-ready CBD oil cartridge product Aurora Cloud, is expected to contribute to sustained strong gross margins during fiscal 2019. Additionally, Aurora is looking forward to the upcoming finalization of the draft regulations which will allow derivative, higher margin products such as vape pens, beverages, and edibles to be sold in the Canadian adult use market during 2019,” according to the company.
Aurora’s independent registered public accounting firm is KPMG LLP. The company will release full results on February 11 pre-market, followed by a conference call later that day.