Aphria Trades Down As Bottom Line Turns Negative In Q2

Aphria Inc. APHA APHA reported second-quarter financial results Tuesday, with net revenue of CA$120.6 million ($92.2 million), up 457% year-over-year from CA$21.7 million. 

The company posted a net loss for the quarter of CA$7.9 million or CA$0.03 per share versus net income of CA$16.4 million, or CA$0.07 per share, in the first quarter. 

The loss was mostly due to provisions related to Aphria’s Tier 3 passive investment portfolio, the company said.

Revenue for adult-use cannabis jumped 46% from the previous quarter to CA$29 million.

Aphria said it achieved a positive adjusted EBITDA of CA$1.9 million, up from CA$1 million in the prior quarter.

Irwim Simon will continue as CEO and is no longer working on an interim basis, according to Aphria. 

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“We are very pleased with our strong growth and execution in Canada demonstrated by our increase in adult-use cannabis revenue and positive adjusted EBITDA as a result of our compelling brands and market positioning,” Simon said in a statement. 

The company updated its guidance for fiscal year 2020, projecting net revenue between CA$575 million and CA$625 million and adjusted EBITDA of CA$35 million to CA$42 million.

Aphria shares were trading down 8.07% at $5.01 in Tuesday's premarket session. 

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