Alberta Mirror

Monday, October 3, 2022

Aurora Cannabis posts $1-billion net loss in Q3 and will shut Edmonton facility

Alberta

Key takeaways: 

  • Edmonton firm’s financials drastically down from same quarter one year back.
  • Financial Results for the third quarter of 2022 were entirely down from the same quarter one year back.

In ongoing measures to slash costs, Aurora Cannabis will be shutting its Sky facility in Edmonton, at one time called one of the firm’s flagship facilities. 

Thursday, the firm said it had considered its Aurora Sky facility in Edmonton, where 13 percent of its international workforce is employed, and its Aurora Anandia and Whistler Alpha Lake sites “redundant.” Aurora Anandia and Whistler Alpha Lake are anticipated to shut by the fourth quarter, and Aurora Sky will shut by the third quarter of 2023.

“Projected COGS (costs of goods sold) savings now have the shutdown of the Aurora Sky facility in Edmonton,” the firm announced its third-quarter results Thursday. The news release stated that the sky had previously been reported to be operating at approximately 25 percent capacity. 

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Aurora Cannabis will be shutting its Sky facility in Edmonton, at one time called one of the firm’s flagship facilities

The three facilities employ 16 percent of the firm’s workforce, said Aurora representative Kate Hillyar in an email to The Canadian Press. She refused to share the total workforce size.

The Edmonton-based firm said it incurred impairment costs that led to a net loss of almost $1 billion in its most recent quarter. At the same time, pricing pressures that pot stores exacerbated closed temporarily during the COVID-19 pandemic ate into its earnings.

The third-quarter loss the Edmonton-based cannabis business declared was up from an almost $160 million loss in the exact quarter the previous year and was related to $741.7 million in goodwill impairment costs and $176.1 million in impairment of property, plants, and equipment. Many of those expenses are linked to facilities Aurora said it will cull from its portfolio this year and make “a slimmer, more agile organization.”

Source – cbc.ca

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