Aurora Cannabis (ACB -3.30%) is doing everything it can to capture its share of the marijuana industry's torrid growth.
The Canadian cannabis company has ramped up its production capabilities over the past year. It produced 57,442 kilograms of cannabis and sold 36,628 kilograms in fiscal 2019. That represented growth of 920% and 629%, respectively, compared to the prior year.
Aurora's higher production capacity helped to fuel a 349% year-over-year increase in revenue, to 247.9 million Canadian dollars.
"In 2019 Aurora took its place as the global leader in cannabis production, research, innovation, and international market development," CEO Terry Booth said in a press release.
Image source: Getty Images.
For the fourth quarter, Aurora's net cannabis revenue rose 61% sequentially to CA$94.6 million. The company's Canadian consumer cannabis revenue climbed 52% to CA$44.9 million, while its medical cannabis revenue increased 10% to CA$29.7 million. Its wholesale bulk cannabis revenue, meanwhile, grew by nearly 10 times from the third quarter to CA$20.1 million. "We continue to see strong growth in cannabis revenues in both medical and consumer categories," CFO Glen Ibbott said.
Importantly, Aurora's profit margins are improving as it scales its cannabis production. The marijuana company's production costs declined 20% sequentially to CA$1.14 per gram in the fourth quarter. That helped Aurora's gross margin on its cannabis net revenue improve by 3 percentage points, to 58%.
Still, Aurora is not yet profitable. The cannabis company's earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at a loss of CA$11.7 million. That is, however, a significant improvement from a loss of CA$36.6 million in the third quarter.
Looking forward
Aurora is gearing up for the impending legalization of cannabis derivative products -- such as edibles and beverages -- in Canada. The company said it plans to have a "robust product line-up" set to launch by December.
"With the Canadian launch of derivative products in the coming months, we have made the necessary investments to ensure readiness and focus on a variety of value-added products," Ibbott said. "We are very excited to supply an expanded consumer market with premium cannabis and new product forms."
