Despite medical marijuana sales rising 18% year over year, Aurora suffered a steep decline in recreational cannabis sales — which were down 48% year over year.
Similarly, the company managed to dramatically lower the rate at which it lost money in Q2 2022 — with net losses falling 75% in comparison to Q2 2021, to just CA$75.1 million.
Furthermore, the company plans to cut another CA$20 million in operating costs through the end of fiscal first half of 2023, and it says it thinks these additional cost cuts — on top of the CA$60 million in costs it has already cut — should be enough to lift it over the edge and into adjusted EBITDA profitability at that point.
To be clear, this week’s report covered the end of fiscal H1 2022, which coincided with the end of calendar year 2021.
That being said, the continued declines in the price of marijuana — down 10% year over year, according to the company — are going to make achieving profitability increasingly hard for all players involved, be they named Aurora Cannabis or Canopy Growth or Tilray.