Bevo starting to pick up speed with added capacity

By Medicine Hat News on February 6, 2025.

Increased capacity helped Bevo improve the bottomline of owner Aurora Cannabis as it transforms the Aurora Sun greenhouse in Medicine Hat to grow horticultural flowers and seedlings for other vegetable growers.

Third-quarter financial statements released Wednesday state the plant propagation segment of the medical and recreational cannabis producer recorded $8.9 million in revenue last fall.

That is about $1.6 million more than in the same three-month period in 2023, and when nine months of the financial year are considered, sales were $6.3 million higher. The company does not break out expenses by business segment.

“The fluctuations in the plant propagationâ€¦ is due to product mix with higher margin sales in the third quarter,” documents state. “Additionally, Bevo’s greenhouses are producing at higher capacity.”

Bevo Agtech is 50.1 per cent owned by Aurora, which contributed facilities in Leduc and Medicine Hat to the firm in a reverse takeover in late 2022.

Work began last winter to commission portions of the Sun facility in northwest Medicine Hat.

Overall Aurora reported higher net revenue of $88.2 million in the quarter, including a 50 per cent increase in medical cannabis sales and 22 per cent rise in plant propagation.

Adjusted EBITA earnings for the period were $23.1 million, up from $5.5 million from the same quarter one year earlier.