Aurora Cannabis Inc. (NYSE: ACB) reported first-quarter fiscal 2019 results before markets opened Monday. The marijuana grower and distributor reported quarterly net income of $105.2 million on revenues of $29.7 million. In the same period a year ago, the company reported net income of $79.3 million on revenue of $3.6 million. There were no analyst estimates for the Canada-based firm, which completed its initial public offering on October 23. The company’s first quarter ended September 30.
The company said sales of medical cannabis products totaled $24 million in the quarter, up from $14.9 million sequentially and $7.3 million year over year. Adult use sales, which did not begin officially in Canada until October 17, totaled $553 million.
Net income attributable to shareholders totaled $105.2 million, up sequentially from $79.3 million and up year over year from $3.6 million. The increase was attributable primarily to an unrealized noncash gain on derivatives and marketable securities, which was partially offset by increased finance costs, share-based payments, acquisition and project evaluation costs.
Aurora did not report per-share earnings. General and administrative expenses totaled $35.9 million, while sales and marketing expenses totaled $29.4 million. The company has about 961,000 shares outstanding.
The average net sales price of cannabis was $9.19 per gram in the first quarter, consistent sequentially and up 12% year over year. Aurora attributed the increase to higher sales of cannabis extracts. For the quarter, Aurora sold a total of 2,676 kilograms of dried cannabis and cannabis extracts, up 65% sequentially and up 201% year over year.
CEO Terry Booth said:
The commencement of adult consumer use sales in Canada has been very successful for Aurora, with strong performance across all product categories and brands. Our initial roll-out success demonstrates how our high-quality Aurora Standard products and well-positioned brands have resonated strongly with the consumer market and our preparedness for the logistical challenges in effectively bringing our products to market. … As a science, medical and patient focused organization, we are committed to continue serving our patients with the products they require. As we built up inventory levels in anticipation of the adult consumer use market, we prioritized product availability for our over 67,000 existing patients. With production ramping up, we anticipate once again pro-actively driving additional growth in this core medical segment, both domestically and internationally.
Shares traded up about 2.7% in Monday’s premarket to $7.49, roughly flat with the IPO price of $7.51. At Friday’s closing price of $7.29, the company’s market cap was $6.86 billion.