In the wake of the COVID-19 pandemic, smoother sailing may be on the horizon for many cannabis LP’s as they continue their upward momentum across many channels.
A boost in cannabis sales helped
Aurora Cannabis Inc. (
TSX.ACB)
beat analyst revenue expectations in its Q3 despite booking a $46.7 million impairment charge. The company also trimmed costs in an effort to reach profitability this year, but didn't meet analysts' EBITDA forecasts.
The Edmonton-based licensed producer said it made $78.4 million in revenue in the three-month period ending Mar. 31, while its adjusted EBITDA came to a $50.9 million loss. The company was also expected to report an EBITDA loss of $38.3 million. Domestic cannabis sales boosted Aurora's top line with "Cannabis 2.0" products driving its pot revenue to $69.6 million, an increase of 32 percent from the prior quarter. It also took a $2.9-million write-down on cannabis product returns in the quarter, the company said.
Shares in Aurora jumped more than 14 percent on Thursday, and by an additional 19 percent in pre-market trading Friday, after the results were announced.
U.S. CBD producer and distributor
Charlotte’s Web Holdings Inc. (
TSX.CWEB) released its first-quarter results Thursday, recording US$21.5 million in revenue while booking a net loss of US$11.5 million.
Revenue figures were in line with a previously announced forecast but were down about five percent sequentially due to lower sales in its ecommerce and specialty food businesses. The company said it expects to see sales growth of 10 to 20 percent this year as customers suffering from stress, uncertainty, and anxiety due to COVID-19 could lead to an uptick in CBD sales, and return the company to positive EBITDA.
Retailer
Supreme Cannabis (
TSX.FIRE) reported its
Q3 financial results Friday, generating $9.7 million in net revenue. That’s equates to “
increased recreational sales revenue by 245 percent year-over-year.” The Company grew recreational sales volumes by 26 percent quarter-over-quarter and is now accelerating revenue generation with over 30 SKUs in provinces across Canada, new product launches and an enhanced retail distribution model.
That's down by roughly three percent compared to the same quarter last year. However, compared to Q2 2020, its increased quarter-over-quarter by more than six percent. Its adjusted EBITDA declined around 12 percent to $11.7 million compared to the second quarter and was down year-over-year from $1.6 million.
FIRE says the restructuring alterations – considering planned reductions of wages, facility costs, sales, etc. – are the result of a new operating model expected to become visible in the next quarter.
Moving forward, it now appears that many of the cannabis industry’s ‘woes’ are turning into ‘wows’.
Remember, everyone is in this together. Be well. Stay safe. Keep calm and carry on.
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