Aurora Cannabis Inc. (TSX:ACB) reported a steep second-quarter loss due to a sharp decline in cannabis production.
The cannabis producer announced that it is writing down about $1 billion in assets as it plans to dramatically reduce spending and return to profitability. The Edmonton-based company already announced much of its write downs and cost-cutting efforts last week, along with the departure of founder Terry Booth as Chief Executive Officer.
Aurora said its total net revenue in the quarter was $56.6 million, down 26% from the prior three-month period. The company also reported adjusted earnings before interest, taxes, depreciation and amortization of $80.2 million, up from $39.7 million in the prior quarter.
Analysts had expected Aurora to report $61.7 million in revenue in the three-month period ending December 31, according to Bloomberg data. The company was also expected to report an adjusted net loss of $83.1 million and an EBITDA loss of $62.5 million.
Aurora also said it produced 30,691 kilograms of cannabis in the latest quarter compared to 41,436 kilograms in the prior quarter. The decrease in cannabis production was attributed to changes to how the company grows its pot, which included a "pivot to high-value, high-potency strains which are lower yielding," the company said in a news release.
The quarterly results mark a pivotal period for the cannabis company, which is the second-largest cannabis producer in the world by valuation, behind only Canopy Growth Corp. (TSX:WEED) Aurora's stock has fallen more than 87% since hitting a high of $15.95 in October 2018.
