Aurora Cannabis (TSX:ACB) reported $55.1 million in revenue for its fiscal third quarter, down 25% from a year earlier and well below the $68.8 million that analysts had expected.
The Canadian cannabis producer attributed the disappointing results to COVID-19 lockdowns and greater competition, which overshadowed gains made in the company’s medical cannabis business.
Aurora Cannabis reported a quarterly loss of $24 million, a 52% improvement from last year but bigger than the $10 million loss that analysts expected.
Much of Aurora's sales problems came from a steep decline in its Canadian recreational cannabis business. Sales in that segment fell 53% to $18 million, a result of weak retail activity caused by pandemic lockdowns as well as more competition in the marketplace.
Aurora's net selling price of cannabis rose to $5.00 per gram in the three months ending March 31, from $4.45 in the previous quarter.
Aurora's medical cannabis business was a bright spot as revenue in that unit rose 17% to $36.4 million. The company said it has identified $60 million to $80 million in cost savings that could be executed over the next 18 months.
Those cost savings come as Aurora's European production facility will begin cultivating cannabis for the continental medical market, saving it from shipping products from Canada, as well as finding further efficiencies in its Canadian facilities.
Aurora also said it plans to move its U.S. stock listing to the NASDAQ from the New York Stock Exchange later this month. And there’s change in the boardroom, as Aurora announced the appointment of Robert Funk as its new independent chair, replacing Michael Singer.
Aurora ended the quarter with $520 million in cash.
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