Aurora Cannabis reports a net loss of 905 million euros

Canadian cannabis producer Aurora Cannabis reported a net loss of around 905 million euros (CAD 1.3 billion) for the second fiscal quarter, with net revenues of 44 million euros, down from 49 million euros in the first fiscal quarter.

The company also reported that its international revenues from the export of medical cannabis had fallen sharply, from around 3.5 million euros last quarter to around 1.39 million euros this quarter. The company attributed this drop to «a temporary interruption in sales» in Germany and Italy.

However, the company's shares were still up over 3% after the publication of the financial report.

Aurora CFO Glen Ibbott said in a statement that, despite the massive losses, the company was «confident» that its run rate would be «around C$40-45 million» (€28-32 million) by the end of the fourth fiscal quarter. Ibbott has declared that recent «transformation actions» undertaken by the company «had already had a positive impact on selling, administrative and other general expenses».

These changes included the departure of Aurora co-founder and CEO Terry Booth and the addition of two new independent directors. Executive Chairman Michael Singer was appointed interim CEO, and the company said it would implement a «business transformation plan».

In the last fiscal quarter, Aurora produced 30,691 kilograms of cannabis, compared to 41,436 in the previous quarter, a decline of 26% mainly due to previously announced changes in cultivation strategies, including a pivot to high-margin, high-dosage varieties in cannabinoids, and low yield.” The cost of producing a gram of cannabis sold was 88 cents CAD (€0.61), compared with 85 cents (€0.59) in the previous quarter.

The company expects its third-quarter results «to show modest to zero growth» compared with the second-quarter report.

«In line with Aurora's publication dated February 6, 2020, we are optimistic about the long-term potential of the global cannabis opportunity. However, due to several short-term factors, the industry's growth rate is likely to be slower than expected in the coming months.»