Aurora Cannabis Inc.’s (TSX: ACB) revenue more than tripled in its fiscal first quarter as the legal recreational market for marijuana in Canada began.
Aurora Cannabis announced that its revenue in the three months ended on September 30 reached $29.7 million, a 260% rise from the same period a year earlier. Net income, meanwhile, rose 2,826% to $104.2 million during the quarter.
The Edmonton-based marijuana producer said early Monday that its sales and marketing expenses nearly doubled to $29.4 million in in its first quarter from $14.8 million in the previous quarter.
"A significant portion of our Q1 2019 marketing spend was in preparation for the adult consumer use market with numerous branding and market awareness initiatives. With more restrictive marketing regulations in effect as of October 17, we will see a significant reduction in average marketing spend over the remainder of the fiscal year," said Chief Financial Officer Glen Ibbott in a written news release.
While Aurora Cannabis ramped up spending in the quarter to prepare for the debut of legal recreational marijuana, the country's medical marijuana market was a major growth driver in the latest quarter, with the company's active registered patients rising 250% year-over-year to 67,484.
Aurora Cannabis’ production cash costs fell 22% year-over-year to $1.45 per gram during the quarter.
ACB stock gained 30 cents, or3.2%, to 9.66 in Monday's first hour of trading.
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