Aurora reports Q2 loss following layoffs, writedown and CEO departure

Aurora reports Q2 loss following layoffs, writedown and CEO departure
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EDMONTON — Aurora Cannabis Inc. says it incurred a loss in its second quarter that was fuelled by a recent $1-billion writedown taken by the company.

The Edmonton-based business says net revenue for the three months ended Dec. 31 was $56 million, up from $54.2 million a year earlier but down from roughly $75 million in the prior quarter ended Sept. 30.

The company’s net income and earnings per share weren’t included in its press release.

Aurora’s earnings report comes a week after chief executive Terry Booth stepped down, the company undertook $1 billion in goodwill writedowns and announced a 500-employee layoff as part of a restructuring of its spending plans.

It says the adjusted EBITDA loss for the third quarter widened to 80.2 million from $39.7 million in the quarter before, due to the revenue decline and increased production costs associated with the launch of cannabis edibles and vapes.

Aurora was further hampered because it produced 30,691 kilograms of cannabis compared with 41,436 kilograms in the quarter before as it changed its cultivation strategies to accommodate more high-value and high potency strains.

Aurora expects its revenues to be impacted by similar headwinds in the next quarter and anticipates that it will experience either modest or no growth.

This report by The Canadian Press was first published Feb. 13

Companies in this story: (TSX:ACB)

The Canadian Press

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