Three of the major cannabis companies – Aurora Cannabis, Tilray and Cronos Group – have published their latest earnings in the last two weeks, giving investors and observers a little more insight into the expanding new markets that are not yet fully in view. Came. But despite the lack of clarity about how the market will respond in the run-up to the second phase of marijuana legalization, which will affect edibles and infused products on the retail market in Canada later this year, the reports offer a new opportunity to compare and compare compare. compare these players based on a number of top metrics.
Let's look at how these companies behave.
1. Aurora Cannabis (TO 🙂 is the largest of these three. With a market capitalization of US $ 8.83 billion (C $ 11.88 billion), it is one of the world's leading producers of medical marijuana. In general, the Canadian company based in Edmonton reported a lower net loss and higher revenue for the quarter ending March 31.
The net loss for the company amounted to $ 158 million ($ 117.63), mainly due to the continuous expansion of the growing facilities. This figure is 33% lower than the net loss of $ C237 million (US $ 177.44) reported in the previous quarter.
The last quarterly earnings rise to C $ 65.1 million (US $ 48.41), an increase of 20% compared to C $ 54.18 million (US $ 40.34) in the previous quarter. A contribution to that growth was a 37% increase in recreational sales, an 8% increase in medical sales in Canada and a 40% increase in international medical sales
Since the reporting, the share price has risen steadily, from US $ 8.02 (C $ 10.83) to US $ 8.99 (C $ 12.12), and closed at US $ 8.68 last week ( C $ 11.71).
2. At Tilray (1945) the last report on May 14 was a bit of a mixed bag. The net loss for the was linked to US $ 30.3 million, a significant increase compared to US $ 5.18 million in the same quarter last year. Meanwhile, revenue for the period was 195.1% compared to the same period in 2018. The engines that fueled this jump were an increase in marijuana and hemp food sales thanks to the recent acquisition of retail hemp producer Manitoba Harvest.
Tilray president and CEO Brendan Kennedy said:
"We have made significant progress in integrating our recent acquisitions of Manitoba Harvest and Natura Naturals, accelerating our entry into the US hemp and CBD markets and increasing our production and production capacity in North America and Europe. "
But the turnover jump was not enough to move investors. The stock price, which was around US $ 47, jumped initially after the release of the numbers, it hit US $ 48.84 before falling to US $ 46.22. It closed last week with US $ 45.66 and confirmed that many of the positive results had already been priced in.
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But observers must keep a sharp eye on the sale of hemp in the retail trade, which could serve as an early indication of the popularity of the edible products that are coming.
3. A week earlier, Cronos Group (1945: 2004), a Toronto-based company about the same size as Tilray with a market capitalization of US $ 4.96 billion (C $ 6.68 billion) , the first quarter has been released, only to see its stock being hit. Shares lost just over 8.8% on the news during the day after announcing it expects the adjusted earnings to fall over the remainder of 2019.
But the shares rebounded, almost returning the prices to where they were earlier in the week.
Cronos In Focus
Cronos reported C $ 6.5 million (US $ 4.8) in revenue for the three-month period ending March 31. Although this figure showed a gain of 15% compared to the previous quarter, it was lower than analyst estimates. The sales increase was mainly due to an increase in sales of CBD oil, the company reported in a statement
CBD oil sales, valued for its therapeutic properties, represented 23% of net product sales in the first quarter of 2019. In the first quarter of 2018, this was only 9% of sales.
Again, the growing popularity of pharmaceutical and therapeutic applications will be an important item to view.
Also in the last quarter, Cronos completed its $ 2.4 billion deal with Altria Group (NYSE 🙂 the US-based cigarette maker. Building on this partnership, the company opened Cronos Device Labs, a research facility in Israel earlier this month, designed to develop evaporation products specifically designed for cannabinoid applications. The chairman, president and CEO of the company, Mike Gorenstein, said:
"Cronos Device Labs will play an important role in positioning the company for long-term success by enabling us to build innovative evaporation products that resonate with our customers and generate shareholder value."
It will be interesting to see where the stock goes from here before the evaporators come on the market.
