Toronto-based medical marijuana producer and distributor, Aurora Cannabis, took a hard hit in early September. The company’s fourth-quarter revenues fell short, with shares falling by nine percent, stunning the company.
While Cam Battley, the Chief Corporate Officer, stated that the revenue deficit should not have happened at all, it was justified. The company has been putting some of its money toward analytical testing and patient counselling, neither of which will help boost the company’s profits. Even though the company had expected to bring in a profit in the fourth quarter, the company is nonetheless optimistic that as it moves into 2020, the revenue will be in the black instead of the red.
Battley might be optimistic about the company’s future, but the numbers are still alarming. The company had an adjusted loss of $11.7 million. While it is better than the loss of $36.6 in the third quarter, it is still not positive enough to be comforting. The revenue for the company has also improved, but not as much as they wanted. The revenue is up by $19.1 million this year, but they had forecasted revenue between $100 million and $107 million, so they are still falling short from where they had said they would be.
Like other cannabis companies, Aurora has discovered that the rollout in retail establishments has been much slower than they had previously anticipated. The Cannabis Act might have legalized cannabis in Canada, but it has a long way to go before cannabis is easily accessible.25 days ago