Aurora ‘expects sufficient supply’ of marijuana to meet adult-use demand

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.

Much of the country has seen a shortage of cannabis products since legalization, while the country’s largest market – Ontario – struggled to win over consumers after weeks-long delivery delays.

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]

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3 comments on “Aurora ‘expects sufficient supply’ of marijuana to meet adult-use demand
  1. Maxcatski on

    The international medical market is forecast at 10 million kilograms annually.

    Think about that for a minute. That’s ten billion grams. On the other hand, that’s only enough to give everyone on the planet a gram and a bit. We need more cannabis!

    Reply
  2. Barry Williams on

    Thank you for this article.

    As an experienced and humbled caretaker of this care-worthy plant I can truthfully say that funded grow facilities DO NOT equal successful or consistent crops.

    Hate to tell the big boys but W. L. Gore’s knowledge of “too many” certainly applies to the living ganja.

    Reply

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