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Aurora Cannabis sales shrink more than expected, stock falls in late trading

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Aurora Cannabis Inc.’s sales continued to decline while losses mounted in the final three months of the Canadian company’s fiscal year, sending shares lower Monday afternoon.

Aurora
ACB,
+7.31%

ACB,
+7.02%

reported a fiscal fourth-quarter net loss of C$134 million ($106 million), which was an improvement from a loss of more than C$1.8 billion in the same quarter a year ago. Aurora did not provide a share count nor per-share loss amount in its announcement.

Net sales declined to C$54.8 million from C$72.1 million a year ago. Analysts on average were projecting a loss of C$54.1 million on sales of C$56.4 million, according to FactSet. Shares fell more than 1% in after-hours trading immediately following the release of the results, after closing with a 7.3% gain at $6.39.

Aurora has been dealing with a major reshuffling after losing more than C$3 billion in its previous fiscal year, and losses for the full year declined to C$693.5 million for the most recent fiscal year. New executives have focused on the market for medical marijuana after struggling with losses from efforts to better compete in the recreational market.

“We are very pleased with our strategic and financial progress in growing our high-margin medical revenue, rationalizing expenses, strengthening our balance sheet, and reducing our cash burn during fiscal year 2021,” Chief Executive Miguel Martin said in a statement Monday. “Given ongoing challenges in the Canadian adult recreational market, our broad diversification across domestic medical, international medical, and adult recreational segments provides us with underlying strength, stability, and growth opportunities in an evolving industry for global cannabinoids.”

Executives are expected to further discuss the results in a conference call scheduled for 5 p.m. Eastern on Monday.

Aurora’s U.S.-listed shares have declined 23.2% so far this year, as the S&P 500 index
SPX,
-0.28%

has gained 18.6%.

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