Aurora Cannabis and Canopy Growth have some bragging rights. They're two of the biggest Canadian cannabis producers. Both companies target popular recreational marijuana markets in their home country of Canada. Both are major players in the important German medical cannabis market.
But there's one glaring thing that neither Aurora nor Canopy can boast about -- achieving consistent profitability. It's a goal to which both cannabis companies aspire. So how close are Aurora and Canopy to turning a profit? For the quarter ending March 31, 2020, Aurora Cannabis posted a net loss of 137.4 million in Canadian dollars. That loss would have been even worse were it not for a positive impact from income tax recoveries.
Canopy Growth's bottom line didn't look much better in its results for its fiscal year 2021 first quarter, which ended on June 30, 2020. The company reported a net loss of CA$128.3 million, although this result was better than expected.
Are the companies at least moving in the right direction? Yes, but it's in large part because both Aurora and Canopy have gotten past some massive inventory and goodwill writedowns. To be fair, though, Aurora and Canopy have also reduced their spending significantly.
Read more at fool.com