If Aurora Cannabis (TSX:ACB) continues with its current “pace” it could pass Canada’s biggest marijuana grower Canopy Growth Corporation (TSX:WEED) in its medical cannabis sales, PI Financial analyst Jason Zandberg said.
“Aurora continues its pace as the fastest growing LP and with the addition of Cannimed, ACB will likely pass Canopy as the largest seller of medical cannabis,” Zandberg said.
On Tuesday, ACB posted its Q3 results for this year. It recorded $16.1 million in revenues, up 211.1 percent from Q3 2017 and up 37.6 percent sequentially from Q2 2018.
Its total cannabis sales of $10.8 million were up 149.4 percent from Q3 2017 and up 11.0 percent sequentially.
For more figures about its performance click LINK.
“We are unsure whether ACB will hold this market lead into the recreational market given Canopy’s numerous supply agreements in hand but we do believe that Aurora will continue to be among the majors in Canada post-legalization,” Zandberg added.
ACB’s CEO Terry Booth said, “more than tripling our revenues year over year demonstrates that Aurora continues to execute consistently on its growth strategy, with exceptional performance across all functions, both in Canada and internationally.”
He added: “It’s worth noting that Aurora’s industry-leading revenue growth since starting commercial operations has thus far been driven predominantly by the output of a single production facility, Aurora Mountain, supported by differentiation into additional revenue streams.”
Zandberg said while ACB’s revenue in Q3 exceeded his expectations, its EBITDA and earnings fell short of what he had modeled.
But still, the company’s momentum is undeniable.
“We are unsure whether ACB will hold this market lead into the recreational market given Canopy’s numerous supply agreements in hand but we do believe that Aurora will continue to be among the majors in Canada post-legalization.”