Article by Armina Ligaya, The Leaf News
Aurora Cannabis saw “strong demand” for recreational pot during the initial few weeks of legalization in Canada and it expects consumer appetite to continue to outstrip supply for “some time.”
The Edmonton-based pot producer was able to meet “just about all” of its supply obligations leading up to and after pot for adult use was legalized on Oct. 17, but it will take time to ramp up its cannabis production in the coming quarters, said Cam Battley, Aurora’s chief corporate officer.
“We’ve heard the discomfort of provinces who across the board have not been able to achieve sufficient supply,” he told a conference call with financial analysts discussing the company’s latest financial results.
“We, we think, have done better than other companies, our peers. We will be ramping up, we will be able to pick up some of the slack soon. But we can’t do that immediately.”
The cannabis producer’s comments came as it reported its results for the three months ended Sept. 30. During the first quarter of its 2019 financial year it delivered revenues of $29.7 million, more than triple the $8.2 million during the same period last year. It also posted a profit of $104.2 million, up from nearly $3.6 million a year ago, boosted by an unrealized non-cash gain on derivatives and marketable securities.
The average net selling price was $9.19 per gram in the quarter, up 12 per cent compared with a year ago, boosted by an increase in cannabis extracts sold.