Aurora Cannabis Inc. (ACB) - Get Report was falling 6% in morning trading Monday after the Canadian cannabis company reported fiscal first-quarter revenue growth of 260% as the company ramps up its adult consumer products.
The earnings report was the first for the company since it debuted on the New York Stock Exchange and recreational pot was legalized last month in its home country.
The Edmonton-based company reported a 260% jump in first-quarter revenue to $29,674,000, yielding net income of $105.5 million, a 32% increase from the previous quarter.
Gross margins on cannabis sales for the company jumped 12% year over year to 70% thanks to a higher average selling price per gram for dried cannabis as well as a higher proportion of cannabis oil sales into the company's sales mix.
"We continue to successfully execute our differentiated and diversified strategy committed towards domestic and international expansion in the medical cannabis market, adult consumer use sales, production scale-up, innovation, plant and medical research, and product development," said Terry Booth, CEO of Aurora.
The company also has benefited from the declining stigma of cannabis usage as the number of active registered medical patients jumped 250% year over year to 67,484. The company reported producing nearly 5,000 kilograms of product, a 395% increase year over year, while selling 2,676 kilograms, a 201% increase, in the quarter.