Shares of Aurora Cannabis Inc. climbed 2 percent after the company reported a $981 million Canadian dollar loss that were mostly expected, after the weed producer rolled out a major restructuring of operations last week.
The company also disclosed that it had a net decline of C$1.18 per share, in the fiscal second quarter after shedding C$182 million, or roughly break-even on a per-share basis. Revenue net of excise taxes was pegged at C$56 million, up from C$54.2 million from the previous year.
The Alberta-based grower said that a "slow pace of retail store licensing" affected recreational product sales. It also cited trimmed-down financial reserves that slowed product returns.
Market executives have complained that Canada's provinces have not allowed enough weed shops to operate, arguing that the lack of stores has hampered access and smothered sales momentum.
After developments last week in which the company announced the departure of its chief executive officer, in addition to a series of job reductions and significant goodwill impairment fees, many saw the quarter's results would be dismal. Analysts were charting around C$65.5 million in profits, and a net loss of approximately C$1.0 billion.
In terms of volume metrics and operational spending in fiscal second quarter, Aurora Cannabis produced 30,692 kilos of product, and sold 9,500. These numbers represented declines of 25 percent and 26 percent, respectively.
The company's average product selling price -- both medical and recreational -- decreased to 5.54 per gram from the first quarter figure of C$5.68.
Realizing the producer's hardship and substantial changes to operations around a market hounded by the country's shifting consumer demands and unpredictable bulk-buying by its provinces, interim Chief Executive Michael Singer asked investors to exercise patience as Aurora transforms along with the industry for weed across Canada.
In Canada, provinces purchase cannabis from licensed companies and then channel it to stores. During its last series of earnings, Aurora stated that after weed shortages dogged the early days of the country's legal era, the provinces "ate up" key supplies as growing season picked up. But then they did not buy as much.
The legalization of cannabis is sweeping across the North American landscape: 11 states plus Washington, DC, have all given the green light for recreational marijuana in the last few years, and full legalization was granted to Canada in October 2018.
Meanwhile, investors seemed to be somewhat relieved that the company's performance was not too much worse than previously estimated. The closely monitored marijuana stocks on Wall Street these days was up more than 2 percent during mid-day sessions, Thursday.
