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Aphria Gains Momentum, With Revenue Nearly Doubling Year-On-Year

April 21, 2020

Ontario-based Aphria saw its business continue to make strides in the three months through February, representing its fiscal first quarter, with revenues and profits both on a solid rise. Aphria’s net cannabis revenue climbed 65% to C$55.6 million ($39m) compared with the previous quarter, as adjusted EBITDA from cannabis operations leapt 78% to C$7 million ($5m). Overall, company revenues nearly doubled from the year-earlier period.

In the three months through February, Aphria sold 8,171 kilogram equivalents for the adult-use market, 1,352 kilogram equivalents for medical cannabis sales, and 4,491 kilogram equivalents in the wholesale market. Aphria said customer demand outstripped supply in the third quarter, but added that it’s in the process of scaling up to an annual cultivation capacity of 255,000 kilograms. While the company continues to post rising sales, it withdrew its guidance for its full fiscal year due to the uncertainty caused by the Covid-19 pandemic. Previously it had forecasted full-year revenues of C$575 million to C$625 million ($407m-$442m), and adjusted EBITDA of C$35 million to C$42 million ($25m-$30m).

Aphria, whose brands include Broken Coast, Solei, Riff, and Good Supply, is partnered with Southern Glazer’s subsidiary Great North Distributors across the Canadian market. Speaking recently to SND, Southern Glazer’s CEO Wayne Chaplin said of Canada’s recreational market, “The supply has been constrained, and the number of stores has not been what we expected so far either. So, with not enough product and not enough outlets, the rollout has been slower than we had hoped. But our relationship with Aphria is very strong. We have a huge commitment to them. And as their production ramps up we’re still very, very bullish on the opportunities in Canada.”—Daniel Marsteller

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