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.
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