08/09/2016 02:42 EDT | Updated 08/10/2017 01:12 EDT

Valeant loss mounts, revenue falls but CEO says turnaround is progressing

LAVAL, Que. — Valeant Pharmaceuticals (TSX:VRX) is reporting a US$302 million net loss for its second quarter — nearly six times bigger than during the same period last year.

The Quebec-based company — which reports in U.S. currency — also had lower adjusted earnings, which fell to $488 million from $751 million in the second quarter of 2015.

Revenue fell by 11 per cent to $2.42 billion from $2.73 billion, mainly because of reduced sales from its existing businesses and a negative impact from a shift in foreign exchange rates. Acquired businesses provided a partial offset.

One bright point for the company, which has seen its value plunge over the past year as a result of numerous issues, was an increase in cash flow from operations. It was up nine per cent to $448 million.

The company also said it's on track to meet the previously announced financial objectives for 2016.

Valeant's recently installed chief executive officer, Joseph Papa, says the company is making progress on stabilizing the organization.

"Although it will take time to implement and execute our turnaround plan, I am confident that we will show progress in the coming quarters,” Pappa said in a statement ahead of a conference call with analysts.