The green rush is in full swing in our neighbor to the north. Just under a month ago, Canada lifted the curtain on nine decades of recreational marijuana prohibition and opened its doors to the fast-paced cannabis industry. When fully up to speed, Canadian pot stocks are expected to benefit from in the neighborhood of $5 billion in added annual sales.
Now, with adult-use weed legal, all eyes have turned to marijuana stocks for tangible results. After all, prior to legalization, it was really a race to see which pot stock could promise the most production or forge the greatest number of supply deals. Now we find out whether or not marijuana stocks can deliver on their lofty goals…
Aurora Cannabis dazzles with a CA$105 million first-quarter profit
Earlier this week, what’s arguably the most polarizing pot stock of them all, Aurora Cannabis(NYSE:ACB), reported its first-quarter operating results. As you might have expected, strong growth was readily apparent throughout.
Total sales for the quarter hit 29.7 million Canadian dollars, up 260% from the CA$8.2 million reported in the year-ago quarter. Even sequential quarterly growth was impressive, with sales rising 55% from Q4 2018 (an approximate CA$10.5 million jump).
What really caught the attention of Wall Street and investors was the company’s gross margin and bottom-line improvement from the year-ago quarter. Gross margin on cannabis sales jumped 70% in Q1 2019 from 58% in Q1 2018, which was a function of higher net selling prices for dried cannabis and lower cash costs to produce dried flower. More importantly, earnings for the quarter…
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