- Cannabis company Aphria (TSX:APHA) has reported a 96 per cent increase in net revenue for the quarter ending February 29, 2020
- Total revenue for the quarter came in at C$144.4 million, compared to $73.6 million in the same period the year before
- At the end of February, the company had a strong balance sheet with $515.1 million in cash and cash equivalents, which will fund Canadian and international growth
- Despite the promising results, Aphria has suspended its previously announced guidance for 2020
- Aphria (APHA) is currently up 4.91 per cent to $5.34 per share, with a market cap of $1.35 billion
Cannabis company Aphria (TSX:APHA) has reported a 96 per cent increase in net revenue for the quarter ending February 29, 2020.
Total revenue for the quarter came in at C$144.4 million, compared to $73.6 million in the same period the year before. This was largely due to the increase in cannabis revenue from sales to provincial control boards.
In addition to improved revenue performance, selling, general and administrative expenses were significantly down from $106.6 million the year before to $50.9 million.
The reduction came in spite of of increases in transaction costs and headcount across the company as it moves towards an annual cultivation capacity of 255,000 kilograms.
Irwin Simon, Chairman and CEO of Aphria, said that he was pleased with the sustained growth and continued expansion of the company’s capabilities, particularly in light of the COVID-19 outbreak.
“During this unprecedented time, the well‐being of our employees, patients, consumers, partners and the communities we operate in is our primary focus.
“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,” he added.
As the virus continues to spread, Aphria also announced that it would be withdrawing its previously announced guidance for 2020.
Revenue for the year had originally been forecast at between $575 million and $625 million, with adjusted EBITDA of between $35 million and $42 million.
The company said that with the growing uncertainty surrounding the virus and its near-term financial impacts, Aphria was left with no choice but to rethink its outlook once the pandemic stabilises. That said, an updated guidance may not be provided until the fiscal 2021 year.
“Going forward, we believe Aphria continues to be differentiated in the cannabis industry through our brands, cultivation expertise, high quality standards, cash position and balance sheet,” Irwin concluded.
At the end of February, Aphria had $515.1 million in cash and cash equivalents, which is intended to fund Canadian and international growth.
Aphria (APHA) is currently up 4.91 per cent to $5.34 per share at 1:01pm EST.