The Globe and Mail reports in its Friday edition that Aurora Cannabis suffered its worst financial quarter since the start of the pandemic as revenue plunged substantially from a year ago, driven by a massive drop in the sales of recreational cannabis products. The Globe's Vanmala Subramaniam writes that the Edmonton-based pot company generated $55.2-million in revenue for its fiscal third quarter ended March 31, a 25-per-cent decline from the same period a year ago. Revenue was down 18 per cent compared with the quarter ended Dec. 31. Aurora generated just $18-million in domestic sales from recreational cannabis, compared with $28.6-million in the quarter ended Dec. 31, a 37-per-cent decline. The company posted a net loss of $164.7-million, an improvement from $292.8-million last quarter. Adjusted gross margins were virtually unchanged on a quarterly basis, up 2 per cent to 44 per cent. Aurora has $525-million in cash, but it plans to access a $300-million (U.S.) at-the-market share offering program, a financing mechanism that allows public companies to issue shares gradually to raise capital when necessary. Aurora blamed the pandemic-induced lockdown, particularly in Ontario and Alberta, for the weak performance.
© 2021 Canjex Publishing Ltd. All rights reserved.