Aurora Cannabis expects to have sufficient supply next year to meet demand in Canada’s shortage-ridden recreational marijuana market, according to a regulatory filing the Alberta company released Monday alongside its quarterly results.
Aurora – one of Canada’s largest licensed producers of companies – reported revenue of 29 million Canadian dollars ($21 million) for the quarter ending Sept. 30, an increase of 260% over the same period a year ago.
Medical cannabis accounted for CA$24 million of that revenue.
The company attributed the rising sales mainly to international demand, higher patient numbers after the acquisition of CanniMed and MedReleaf, an increase in the average net selling price of dried cannabis and the commencement of the Canadian adult-use market.
Aurora recorded almost CA$600,000 ($453,000) in sales of adult-use products in the first two weeks of Canada’s legal recreational marijuana market.
Aurora, for its part, said it expects to have enough marijuana “to fulfill its confirmed sales orders from the provinces.”
In preparation for the Canadian adult consumer-use market, the company said it “chose to constrain international sales in order to continue servicing the Canadian medical market, while building inventory.”
Aurora expects to more than double its production capacity to 150,000 kilograms (330,693 pounds) in the coming months.
Despite Canada being the first G-7 nation to legalize recreational marijuana, Aurora sees more growth potential in overseas medical markets.
According to its filing, “the company maintains its position that long term the international medical market has the most significant growth prospects and is expected to grow to 10 million kilograms per annum according to industry observers.”
Aurora is active in 10 markets outside Canada and sold CA$1.56 million worth of dried medical cannabis internationally in the quarter.
Some highlights from Aurora’s earnings:
- The company’s brands accounted for about 30% of the total market supplied through the troubled Ontario Cannabis Store.
- The producer boasted 67,484 active medical cannabis users in the quarter.
- Aurora says its “funded capacity” in Canada is expected to yield 422,300 kilograms of cannabis annually when fully built out.
- The company now has two European Union Good Manufacturing Practices (GMP)-certified facilities, which will increase product availability for heavily regulated EU markets, particularly Germany.
- Aurora and its subsidiaries have 40 clinical trials and case studies completed or in progress and another seven preclinical trials in progress.
Matt Lamers can be reached at [email protected]
To sign up for our weekly international marijuana business newsletter, click here.