One week after announcing a transformation plan that involved the departure of its founding CEO, Aurora Cannabis on Thursday reported a net loss of 1.3 billion Canadian dollars ($980 million) for its second quarter, fueled by write-downs worth almost CA$1 billion.
The Alberta, Canada, company’s quarterly revenue fell sharply for the period ending Dec. 31, 2019.
Net revenue for the second quarter came in at CA$56.6 million, 25% lower than the previous quarter’s CA$75.6 million.
Sales took a hit from a 77% decline in wholesale revenue, to CA$2.4 million.
International sales of medical cannabis decreased 64% to CA$1.8 million because of a temporary sales suspension in Germany. Sales there have since resumed.
Aurora’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss doubled to CA$80.2 million, compared with the previous quarter’s CA$39.7 million loss.
Costs, meanwhile, continued to rise.
Overhead costs in the second quarter rose 23% to almost CA$20 million.
Cannabis production fell 25% in the quarter to 30,691 kilograms (67,662 pounds).
On Feb. 6, Terry Booth stepped down as CEO and the company slashed 500 full-time positions to reduce the company’s expenses.
After reporting growing losses in November, Aurora shelved expansion plans for its large cultivation facilities in Denmark and Medicine Hat, Alberta.
At the time, Aurora said the moves would save the company a combined CA$190 million in the coming year.