Aurora Cannabis Inc. reported a 19% sequential decline in revenue Thursday, reporting sales of C$75.3 million ($56.8 million) versus C$98.9 in the previous quarter, as the company slows its expansion plans in Canada and abroad.
The company reported fiscal first-quarter net income attributable to Aurora of C$12.8 million, or a penny a share, compared with C$105.5 million, or 12 cents a share, in the year-ago period.
Aurora said that it sold C$30.5 million of medical weed; recreational sales sequentially declined 33% to C$30 million, which Aurora said was due to slower provincial ordering. Aurora sold C$10.3 million worth of wholesale pot.
Aurora said it planned to immediately halt construction at one of its weed-growing facilities in Denmark, which it said would save around C$80 million in the next 12 months. The company also said it would delay completing the final construction and activation of its Aurora Sun facility in Canada.
Aurora reported earnings amid a brutal stretch for some of the world’s largest cannabis companies. Before the opening bell, Canopy Growth Corp. CGC, -14.38% WEED, -14.27% reported a fiscal second-quarter loss of C$374.6 million ($282.4 million), or C$1.08 a share on revenue of C$76.6 million. Earlier this week investors saw results from Tilray Inc. TLRY, -5.35% , which beat Wall Street revenue estimates, and Cronos Group Inc. CRON, -6.06% , CRON, -6.04% which missed revenue expectations.
In the earnings release, Aurora said that it had secured a commitment of investors holding C$155 million of its March 2020 debentures to voluntarily convert their debentures. Remaining holders of the debt will have the option to convert their debentures at a discount.
“In order to capitalize on this global market, we recognize the need to be nimble and proactive. To enhance our financial flexibility and position us to take maximum advantage of future growth opportunities, we have also taken decisive steps to immediately strengthen our balance sheet,” Aurora Chief Executive Terry Booth said in a statement.
Ahead of Thursday’s extended session moves, Aurora shares had declined 34%, as the ETFMG Alternative Harvest ETF MJ, -4.55% fell 31%.