Aurora’s plant propagation business helped drive the revenue boost.
Canada-based Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB) reported a huge revenue boost in its first quarter of its 2024 fiscal year, which closed June 30, but it still posted a C$28.3 million loss. However, that was a major improvement from a year prior when the company lost C$619 million.
Aurora’s revenues shot up to C$75.1 million during the quarter, almost a 50% increase from a year prior when revenues hit C$50.1 million. The company said the increase was primarily due to its burgeoning plant propagation division and its “global medical cannabis business,” instead of local Canadian adult-use sales.
Medical cannabis revenues accounted for C$41.6 million, up 14% year-over-year, plant propagation brought in C$19.9 million in revenues following the acquisition of Bevo last August, and adult-use cannabis sales pulled in C$13.2 million, up from C$12.6 million year-over-year.
The C$590 million decrease in losses for the quarter year-over-year, Aurora said, were also due to “a decrease in other expenses,” including impairment of intangible assets and goodwill; a decrease in property, plant, and equipment value; lower operating expenses, and a slight increase in gross profit.
For the coming second quarter, Aurora forecast “similar” net revenue to Q1, but predicted “seasonally reduced revenues” from its plant propagation wing, and noted that only about 25%-35% of such seasonal income is typically in the second half of each calendar year.
For the rest of the year, Aurora projected confidence in its global footprint, and reported that “demand for the Company’s products globally is beginning to outpace supply” on the cultivation side specifically.
Aurora has also diversified and plans to begin selling orchids from some of its cultivation facilities in the third quarter this year, it reported.
At the close of June, Aurora had C$227.3 million in the bank and C$171.9 million in total liabilities.
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