Aurora Cannabis (ACB) has reported a third-quarter net loss of $51.9 million as its revenue fell
28% from a year ago.
The Edmonton-based company’s net revenue for the period ended September 30 amounted to
$13.7 million, up from $12.6 million in its previous quarter, but down 28% from $19.1 million in
the same period of 2021.
Despite the Q3 loss, the cannabis producer said it is on track to achieve profitability by the end
of this year.
Aurora Cannabis’ path to profitability has involved restructuring and several rounds of layoffs
and facility closures. The company says it continues to struggle to align supply and demand.
Also making profitability difficult is rising competition in the Canadian cannabis market, which
includes a soaring number of legal cannabis stores and a robust black market.
The average price for cannabis in Canada was $11.78 per gram at the start of 2019, shortly
after legalization, but fell to $7.50 per gram in 2021, according to a report from accounting firm
Deloitte.
While competitors slash prices to compete with each other and the black market, there are also
pressures from high inflation and packaging costs, said Aurora Cannabis.
Aurora Cannabis plans to increase production in coming months as it strives to become
profitable.
Aurora Cannabis’ stock is down 76% this year and trading at $1.77 per share.
