Aurora Cannabis (ACB) has reported a net loss of $1 billion for its fiscal third quarter and
announced plans to close several facilities as it tries to adjust its operations and improve its
finances.
The latest loss announced by the Edmonton, Alberta-based cannabis company was up from a
more than $160 million net loss recorded in the same quarter last year and resulted from $741.7
million in goodwill impairment charges and $176.1 million in impairment charges related to
property, plants and equipment.
Many of those charges are linked to cannabis grow facilities that Aurora says it will now close to
create “a leaner, more agile organization.”
The company said its Aurora Sky facility in Edmonton and its Aurora Anandia and Whistler
Alpha Lake sites in British Columbia will now be shutdown. The three facilities employ 16% of
the company's workforce.
Recently, Aurora announced it will wind down operations at an outdoor grow site in the British
Columbia interior because it recently acquired Thrive Cannabis, which has indoor and outdoor
grow facilities.
The company's latest quarter was also weighed down by excess inventory, older products, and
fierce competition, said Aurora Cannabis in its earnings statement.
The company also said its new round of closures and job cuts will result in it saving between
$150 and $170 million annually, up from the $60 to $80 million previously forecast.
Aurora Cannabis’ loss per share amounted to $4.72 compared to a loss of $0.83 during the
fiscal third quarter of 2021. Analysts, on average, had expected a loss of $0.34 per share for the
most recent quarter, according to Refinitiv data.
Aurora said its net revenue for the period ended March 31 reached $50.4 million, down 9% from
$55 million in the previous quarter.
Year to date, Aurora Cannabis’ stock has fallen 50% to trade at $3.65 a share.
