After nearly a full quarter of recreational cannabis sales in Canada, the world’s cannabis producers are posting earnings.
While some earnings weren’t as great as hoped, others did very well.
Tilray Inc. Revenue up 195%
Tilray Inc. (NASDAQ:TLRY) reported financial results for the first quarter ended March 31, 2019. Revenue increased 195.1% to $23 (C$31.0) million, compared to the first quarter of last year, driven by the legalization of Canadian adult-use in 2018, the addition of hemp food sales from the Manitoba Harvest acquisition during the quarter, and strong growth in international medical markets. Excluding excise taxes, revenue was $21.5 million.
“We have made significant progress integrating our recent acquisitions of Manitoba Harvest and Natura Naturals, accelerating our entry into the United States hemp and CBD markets, and increasing our production and manufacturing capacity in North America and Europe. As we expand our operations around the world, we remain focused on making disciplined investments to maximize the multiple paths to value creation we are aggressively pursuing for our visionary investors,” said Brendan Kennedy, Tilray President and CEO.
Aurora Cannabis Revenue Growth up 20%
Aurora Cannabis Inc. (NYSE:ACB) results for the third quarter ended March 31, 2019. Continued solid revenue growth averaging 20% across all key markets, driven by successful scale up of the Company’s production and continued strong performance across the Canadian consumer, and Canadian and International medical cannabis markets. For example, the company’s medical patient base increase by 5% to 77,136.
“I’m exceptionally proud of our company and team as Aurora continues to deliver on our domestic and international growth strategy. We achieved solid revenue growth and strong operating results in a quarter proven challenging across the industry. We are laser focused on building a long-term sustainable business,” said Terry Booth, CEO. Glen Ibbott, CFO, added, “Aurora is an extremely active and diversified company, leading the industry in cannabis research, product development, cultivation, global scale, and revenue growth. With a solid Q3 on all fronts, it’s time to move the yardsticks for the industry again. The company we have built with purpose through both organic growth and targeted acquisitions has provided a unique opportunity: continue to lead the industry in revenue growth while also progressing to positive operating earnings in the near term.”
CannTrust Holdings Inc. Revenue up 115%
CannTrust Holdings Inc. (NYSE:CTST) revealed its numbers for the first quarter ended March 31, 2019, including record quarterly revenue of $16.9 million, a 115% increase over the first quarter of 2018, 67% was through the medical channel and 33% through the recreational channel. Total active patient count reached 68,000 at March 31, 2019, a 70% increase over the first quarter of 2018; Harvested production increased by more than 400% to over 9,400kg, versus the first quarter of 2018, and 96% over the fourth quarter of 2018; Sold over 3,000kg of dried cannabis equivalent, a nearly 200% increase over the prior year, at an average net price of $5.47 per gram.
“The CannTrust team delivered exceptional operational growth in the first quarter, with harvested production of over 9,400kg. This is a 96% increase in production over the prior quarter and reflects the impact of the investments made into our facilities, as well as process improvements to increase throughput,” said Peter Aceto, CEO. “With the successful closing of our equity offering providing gross proceeds of US$170 million (before exercise of the over-allotment option), we are well positioned to execute on our growth plans.”
“Our fully-permitted Phase 2 expansion is expected to reach its full capacity of 50,000kg on an annual basis in the third quarter of 2019, and our 81 acres of land for outdoor cultivation has been prepared and we are awaiting regulatory approval to start planting. We have commenced work on our Phase 3 expansion in Niagara, which we expect will add a further 50,000kg of annual capacity. All told, we continue to expect to exit 2020 at a production rate of between 200,000kg to 300,000kg per year. This is a very exciting time for CannTrust and we plan to continue executing on our vision of becoming a global provider of innovative cannabis products and brands.”