Given how awful the past five years of the cannabis industry have been, it’s only natural for investors to wonder what the next five years will bring for the businesses attempting to make a turnaround, like Aurora Cannabis (NASDAQ: ACB). Far from being a fallen champion, this company’s recent history is marred by frequent announcements of shuttered facilities and painful efficiency improvements.
Will the returns during its next half-decade make the ongoing struggles worth it for shareholders? It’s possible. Here’s why.
Can it make more money than it spends?
In the next five years, Aurora will have a few strategic priorities.
The first priority is to continue to cut costs and increase efficiency with the goal of producing positive free cash flow (FCF) — or what’s left from cash flow after business investments and capital spending — sometime in 2024. Over the past three years, management claims to have made around 400 million Canadian…
