NEWS BRIEF

Aphria emerges as industry leader, reports fourth profitable quarter in a row

Ontario-based cannabis producer Aphria reported its fourth consecutive quarter of positive adjusted EBITDA, separating itself from competitors that raked up collective net losses exceeding CA$6 billion ($4.4 billion) in recent quarters.

Aphria’s adjusted EBITDA – a measure of profitability – for the period ending Feb. 29 rose to CA$5.7 million, up substantially from its CA$2 million in the previous quarter.

The Leamington company also reported steady improvement in revenue.

Net revenue rose 20% from the previous quarter to CA$144 million.

Aphria reported improved figures across the board.

Kilograms sold doubled to 14,000 (30,865 pounds) for the December-February period.

Cash and cash equivalents rose to CA$515 million.

“Our facilities, offices and patient-care teams remain open and operational to continue to provide our patients and consumers with what we believe is best-in-class care and service with appropriate measures in place to protect the health and safety of employees,” CEO Irwin D. Simon said in a news release.

Because of the growing uncertainty and the potential impact of the COVID-19 pandemic, Aphria is suspending its previously announced guidance for revenue and adjusted EBITDA.

The company had expected to report revenue of CA$575 million-CA$625 million and adjusted EBITDA in the range of CA$35 million-CA$42 million this year.

Aphria said any of the following could impact its near-term revenue:

  • Any European country that supplies CC Pharma, its German subsidiary, closing its border to exports.
  • The Alberta or Ontario governments implementing stricter stay-at-home measures.
  • Cannabis wholesalers in Alberta or Ontario making unexpected changes to sales orders.
  • Consumer purchasing habits returning to pre-pandemic sales levels.
  • Provincial governments eliminating or scaling back delivery methods for retail sales as part of their COVID-19 measures.
  • Aphria’s facilities facing greater levels of employee absences because of the pandemic.
  • The company’s supply-chain partners increasing their prices or experiencing unanticipated disruptions.
Aphria trades as APHA on both the New York Stock Exchange and Toronto Stock Exchange.

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