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Aphria Reports Rising Revenue, Covid-Related Impairment

August 4, 2020

Leamington, Ontario-based Aphria saw gross revenue from adult-use cannabis increase 27% and net revenue increase 5% quarter over quarter in the three months through May, representing the end of its fiscal year. Net cannabis revenue for the quarter was C$53.1 million ($38.8m) and total net revenue was C$152.2 million ($111.4m), with the C$99.1 million ($72.5m) difference contributed by Aphria’s distribution operations. That figure is C$8 million ($5.8m) more than the prior quarter and marks five consecutive quarters of growth.

However, Aphria also logged a net loss of C$98.8 million ($72.3m) in the fourth quarter. The loss includes a non-cash impairment of C$64 million ($46.8m), “largely attributable to measures taken with respect to certain international business in response to the Covid-19 pandemic.” Adjusted EBITDA for the quarter was a positive C$8.6 million ($6.3m), a 49% increase over the previous quarter.

For its full fiscal year, Aphria’s gross revenue for adult-use cannabis totaled C$150 million ($109.7m), up 307% from 2019, and net revenue rose to C$543.3 million ($397.6m), more than doubling 2019’s total. Adjusted EBITDA for the year was $17.2 million ($12.6m). Chairman and CEO Irwin Simon called fiscal 2020 “a transformative year” for the company.—Danny Sullivan

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