E Aphria Q2 Financials Showed Continued Improvement In EBITDA - Stock Continues To Soar

Aphria Inc. (TSX/Nasdaq: APHA) reported its financial results today for the 3-month period ending November 30, 2020, recording a seventh consecutive quarter with positive adjusted EBITDA  and positive adjusted EBITDA from the cannabis business.

Financial Highlights

(All amounts are expressed in Canadian dollars unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts. Go here to convert into other currencies. All comparisons are to the previous quarter i.e. Q1, 2021.)

  • Net Total Revenue: increased 10% to $160.5M s a result of:
    • an increase in distribution revenue at CC Pharma in Germany and
    • an increase in net cannabis revenue
    • as well as five days of contribution from net beverage alcohol revenue from the acquisition of SweetWater. 
  • Adj. EBITDA: increased 26% to $12.6M
  • Net (Loss): increased to $(120.6)M from $(5.1)M
  • (Loss) per Share: increased to $(0.42) from $(0.02)
  • Adj. Net Revenue: increased 78% to $3.2M 

Operational Highlights

  • Reduced cost of producing dried cannabis by 9% to $0.79/g
  • Completed first EU-GMP shipment of dried cannabis and cannabis oil to Germany.
  • Received import permit for first EU-GMP shipment of cannabis oil for sale and distribution in Malta.
  • Completed the first shipment of medical cannabis to Canndoc for distribution in Israel.
  • Executed supply agreement with ODI Pharma AB, expanding Aphria's international presence into Poland.
  • Completed the accretive, strategic acquisition of SW Brewing Company, LLC, further diversifying the Aphria's product offering.
  • Expanded 510 vape offerings.

Management Commentary

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

  • "We...have advanced our long-term vision for building a global cannabis lifestyle consumer packaged foods company positioned for sustainable, profitable growth with the completion of our acquisition of SweetWater late in Q2...
    • SweetWater is a cornerstone within our U.S. strategy and a strong complement to our existing Aphria business that we believe will return compelling financial benefits.
    • We already hit the ground running by starting to build upon the strengths of each of our respective complementary cannabis lifestyle brands broadening our consumer reach and enhancing loyalty with existing consumers.
  • We remain excited about our recently announced definitive agreement with Tilray...to create the largest global cannabis company and are on track to close the transaction in the second quarter of the calendar year 2021...  
  • Looking forward, we are planning to execute on the significant strategic and financial opportunities provided by the addition of SweetWater and, upon the closing of the Tilray business combination, including our over $100 million anticipated pre-tax synergies, to generate significant value for our stakeholders."
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