Aurora Cannabis Posts Billion Dollar Loss In Q3, To Close Edmonton Facility

Aurora Cannabis (TSX: ACB) reported another quarter to remember last night as it continues to slash its operations in an attempt to reach profitability. At the same time, the company saw its revenue decline roughly 17% on a sequential basis as it continues to lose market share.

Revenue for the fiscal third quarter came in at $50.4 million on a net basis, down from $60.6 million seen in the fiscal second quarter. The decline was most significant in the firms consumer cannabis segment, which saw revenue fall 28% from $14.4 million to $10.3 million. Medical revenue meanwhile tumbled only 14%, dropping from $45.7 million to $39.4 million on a quarter over quarter basis.

And things got no better from here.

Cost of sales for the quarter came in at $60.4 million, putting the company into gross loss territory before fair value adjustments, with gross losses hitting $10.0 million. Operating expenses meanwhile outstripped gross revenues at $58.2 million, lead by general and administrative expenses of $23.7 million and sales and marketing expenses of $15.9 million. Loss from operations overall totaled $72.4 million.

Other expenses then added to the disaster of a quarter, with the company seeing total other expenses of $940.0 million. The company during the quarter saw impairments of property, plant and equipment of $176.1 million, which was largely the result of the closure of its Aurora Sky facility in Edmonton. To this end, the company is reworking its focus to lower volume higher margin cannabis, which did not fit with the Edmonton operation.

A further $741.7 million in goodwill was impaired during the quarter, leading to the massive loss.

As a result, the company overall posted a net loss for the quarter of $1,012.2 million, while adjusted EBITDA was reported as being negative $12.3 million.

The company meanwhile reported a cash position of $429.9 million, up from $332.4 million, and total current assets of $696.8 million. Total current liabilities meanwhile are sitting at $119.1 million.

In terms of outlook, the company maintains it is on track to “achieving a positive Adjusted EBITDA run rate by the first half of fiscal 2023,” despite the gross loss posted during the quarter. The company has increased the planned cuts to its operation, from $60 to $80 million to that of $150 to $170 million.

Aurora Cannabis last traded at $3.15 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Military Seizes Power in Madagascar After President Flees

Related News

BofA Terminates Coverage On Tilray, Aurora Cannabis

On November 18th, Bank of America terminated coverage on Tilray Inc (TSX: TLRY) and Aurora...

Friday, November 19, 2021, 11:47:00 AM

Aurora Exports $10 Million In Cannabis To Israel

Aurora Cannabis (TSX: ACB) seemingly remains focused on growing its international medical cannabis operation. The...

Tuesday, January 4, 2022, 08:07:20 AM

Aurora Cannabis Posts Record EBITDA But Free Cash Flow Remains In The Red

Aurora Cannabis Inc. (TSX: ACB) reported strong results in its fiscal Q2 2025 earnings, posting...

Wednesday, November 6, 2024, 09:15:46 AM

Aurora Cannabis Attempts To Raise US$125 Million In Public Offering

It seems that Aurora Cannabis (TSX: ACB) (NYSE: ACB) is intending to use its recent...

Wednesday, November 11, 2020, 07:25:48 AM

Dead Cat Bounce? Poking At The Cannabis Market

An unexplained bout of optimism came over the marijuana markets this past week, as the...

Sunday, October 6, 2019, 07:00:13 AM