Aurora Cannabis (TSX:ACB)(NYSE:ACB) stock is down 40% over the past 12 months while the Horizons Marijuana Life Sciences ETF (TSX:HMMJ) has climbed by more than 50%. The pot stock has struggled to attract cannabis investors despite the industry's attractive growth potential. And when Aurora released its third-quarter results earlier this month, it didn't provide much of a reason to change people's minds.
Net sales of $55.2 million were down 25% from the prior-year period. And although the company's adjusted EBITDA was negative $24 million and an improvement from last year, it remains far from breakeven. Even a smaller company like Sundial Growers (NASDAQ:SNDL) recently hit positive adjusted EBITDA. While Aurora is targeting breakeven, it still has a long way to go to get there.
Aurora CEO Miguel Martin boasted that despite the challenges in the Canadian market, " we delivered the strongest performance in domestic medical and the best results in international medical cannabis of any Canadian LP during the period."
The company also said it has identified another $60 million to $80 million that it can shave off in annual costs to help bring it closer to profitability.
While this is great progression for the company, it could simply be too little too late for cannabis investors looking for strong growth stocks in the sector. With Aurora posting disappointing sales numbers and lagging behind its peers in terms of profitability, there isn't a compelling reason to invest in its stock. Despite its persistent decline, it wouldn't be surprising for shares of this pot stock to fall even further down.
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