Cannabis 2.0 products, divesting assets key for Aurora to reach profitability targets this year: Interim CEO 

It appears that Aurora Cannabis' plans to hit profitability targets remain on track, according to the company's interim CEO Michael Singer. In an interview with BNN Bloomberg, Singer says the company is focusing on its profitable ventures and divesting itself of "non-core" operations, while doubling down on some of its 2.0 products that are leading the market, such as gummies. Aurora's search for a permanent CEO remains on track, and a decision is expected in months, Singer said. He added that the company remains interested in the U.S. market and expects to enter that space in a "responsible and thoughtful" way. 

Sundial Growers books $43.9M Q1 loss, discloses half of staff laid off since January

Sundial Growers reported a $43.9 million first-quarter loss on Friday, as its revenue rose about 7 per cent to $23 million in the prior month. The Calgary-based cannabis producer noted its selling-price-per-gram plunged due to discounts and return provisions, while vape sales in the quarter accounted for about 25 per cent of its cannabis revenue. Sundial took a $5.6-million impairment charge on assets and a $7.7-million provision charge on inventory. The company said it reduced its staff by about half to 420 workers, and separately announced the sale of a U.K. asset for $90 million while assuming $45 million in debt.   

Supreme Cannabis records $57.5M in impairment charges in Q3, takes $72.3M loss

Supreme Cannabis reported fiscal third-quarter results on Friday with a slight sequential improvement in revenue while booking $57.5 million in asset impairments. The Toronto-based cannabis producer also reported a $72.3-million loss, compared to a $17.3-million loss in the prior quarter. Supreme's adjusted EBITDA fell to a $11.7 million loss. The company said its impairment charge stemmed from goodwill tied to its BlissCo and Truverra acquisitions and could be attributed to "slower than expected development of the recreational cannabis market in Canada." It has just $23.1 million in cash, down from $48.7 million in the prior quarter. 

TGOD expecs to see as much as $60M in impairment charges in Q1

The Green Organic Dutchman said late Thursday it expects to see non-cash impairment charges of $50 million to $60 million after assessing the book value of its global assets. The Toronto-based company said the charges come amid shifting consumer demand for cannabis products during the COVID-19 pandemic, which led to a temporary closure of its Quebec cultivation facility and Jamaican operations. TGOD reiterated its plans to achieve positive cash flow this year. Jefferies analyst Owen Bennett said in a report that the impairments suggest continuing operational struggles for TGOD, and that the company may need to raise further capital to stay afloat. "This has been the underlying reason for our caution, with little confidence remaining in the management's ability to execute," Bennett said.

Pure Sunfarms extends profitability streak to five quarters with $8.6M Q1 profit

Village Farms International said its Pure Sunfarms cannabis business reported a first-quarter profit of $8.6 million, up from $5.9 million a year earlier. The profit marked its fifth consecutive quarter of positive net income. The company, which owns about 57 per cent of Pure Sunfarms, also said the subsidiary booked $18 million in revenue during the quarter, an increase of 25 per cent from the same period a year earlier. Pure Sunfarms is also waiting for further regulatory clarity from U.S. officials regarding its CBD business, the company said. Raymond James analyst Rahul Sarugaser said that Village Farms' knowledge of operating in a mature, thin-margin market - as it has in the fresh produce business - is now paying dividends for its cannabis operations. 

Delta 9 reports Q1 revenue at upper end of guidance

Retailer and producer Delta 9 Cannabis reported first-quarter results late Thursday, posting $11.8 million in revenue, more than double what it recorded in the same period a year earlier. The Winnipeg-based company also recorded a net profit of $2.9 million, while its adjusted EBITDA came to a $1.65 million gain. The company now touts a 42-per-cent gross margin across its three main business lines, with its wholesale segment leading the pack. Canaccord Genuity analyst Kimberly Hedlin said Delta 9's revenue figures came in at the upper end of its guidance, and noted the company plans to open 12 additional retail stores over the next two years. 

GTI become first U.S. pot player to see quarterly revenue pass US$100M mark

Green Thumb Industries issued its first-quarter results late Thursday, becoming the first U.S. cannabis company to post quarterly revenue above the US$100 million mark. The Chicago-based company said it made US$102.6 million in revenue, while posting an adjusted operating EBITDA of US$25.5 million. GTI, as its commonly known, has 42 retail stores across 10 states with comparable sales growth up 75 per cent from outlets that have been open for at least a year. Beacon Securities noted that GTI beat expectations "across the board," raising the bar for its competition in terms of revenue growth. 
 

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