Aphria’s Cannabis Revenue Jumps As Company Mounts Innovation PushOctober 20, 2020
Canadian cannabis producer and distributor Aphria saw surging cannabis revenues in its fiscal first quarter ended in August, with sales from its products pulling even with its distribution business for the first time. Ontario-based Aphria’s net revenue for the quarter was C$145.7 million ($110.5m), split between C$82.22 million ($62.3m) from its own cannabis products and C$82.19 million ($62.2m) from distribution, minus C$19.7 million ($14.9m) in excise taxes. In the same quarter a year ago, cannabis revenue totaled only C$35 million ($26.5m).
On a volume basis, Aphria sold 20,882 kilogram equivalents of cannabis in the quarter, up from 12,556 in the quarter before. Its overall adjusted EBITDA improved as well at just over C$10 million ($7.6m), making it one of the more financially healthy of the major producers. Among its newer offerings, Aphria recently added large-format SKUs to its Good Supply and P’Tite Pof cannabis labels, while also unveiling a new large-format economy brand, Bingo. Its other brands include premium-tier Riff, and super-premium Broken Coast.
Aphria has also been buoyed by its success with vape products, which it focused on among the various “2.0” categories that came online in Canada a year ago. Vape pens currently represent approximately 13% of the total Canadian retail cannabis market, according to the company, which believes that share will reach at least 20% looking ahead.
“The company successfully launched over 30 new vape SKUs into the Canadian market with positive reviews from control boards and consumers alike,” Aphria noted, adding that it benefited from its early focus on the segment. Moving forward, Aphria expects edibles, concentrates and beverages to comprise a growing share of the future market, and says it’s also looking to innovate in those areas.—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.