Cannabis Central: Aphria Inc. Stock Tumbles 18% On Q1 Results

Aphria Inc. (APHA), a constituent in the munKNEE Pure-Play Pot Stock Index, reported extremely disappointing financial results for Q1 ended August 31/20, today, as follows:

Q1 Financial Highlights (All figures are in Canadian dollars and compared to the previous quarter)

• Net Revenue: declined 4.3% to $145.7M
• Net Income (Loss): improved to ($5.1M) from ($98.8M) 
• Profit (Loss) per Share: improved to ($0.02) from ($0.39) 
• Selling, general, and administrative costs: decreased 53.3% to $54.4M 
• Adj. Cannabis Gross Profit: increased 12.1% to $31.5M 
• Adj. Cannabis Gross Margin: declined to 49.7% from 52.9%
• Adj. EBITDA from Cannabis: increased 10.6% to $10.4M
• Production Cost/Gram: decreased 1.1% to $0.87
• Average retail selling prices:
  • medical cannabis increased 11.3% to $7.38/g 
  • adult-use cannabis declined 20.7% to $4.15/g 
• Qtr. End Cash/Equiv: declined 19.5% to $400.0M

Q1 Operational Highlights

• Transferred its U.S. stock exchange listing from the New York Stock Exchange to The Nasdaq Global Select Market ("Nasdaq") on June 8, 2020. The Company's primary listing on the Toronto Stock Exchange (TSX: APHA) remained unchanged.
• Filed prospectus supplement for US$100 million At-the-Market program on July 29, 2020, which the Company plans to use for acquisition opportunities.
• Launched B!NGO as a large format economy brand utilizing lower potency cannabis.
• Launched Good Supply and P'tite Pof in large-format SKUs.

Management Comments

Irwin D. Simon, Chairman and Chief Executive Officer, said in part:

"We believe that the  strength of our balance sheet and cash position, combined with our consistent focus on our highest-return priorities, will generate sustainable long-term value for all stakeholders."

Stock Performance

Aphria, a constituent in the munKNEE Pure-Play Pot Stock Index, is down 8% YTD and declined 18.4% today in anticipation of disappointing Q1 results.