Aphria Inc. (NYSE: APHA) (TSX: APHA) announced second quarter financial results ended November 30th, 2019. Aphria reported cannabis revenue of CAD 29 Million, an increase of 46% from the prior quarter. Net cannabis revenue reached CAD 33.7 Million in the second quarter, a 9% rise compared to the prior quarter. Net revenue amounted to CAD 120.6 Million, a 457% increase compared to a year ago and a 4% fall from the previous quarter.
“We are very pleased with our strong growth and execution in Canada demonstrated by our increase in adult-use cannabis revenue and positive adjusted EBITDA as a result of our compelling brands and market positioning,” stated Irwin D. Simon, Chairman and Chief Executive Officer. “We are continuing to expand our capabilities internationally with solid progress during the quarter in Germany and South America and look to monetize non-core assets. We are confident in our market position and our ability to generate sustainable profit growth. I am honoured to continue to work closely with our tremendous team around the world to fuel growth and value for all of our stakeholders. Going forward, we believe our brands, cultivation expertise, cash position and balance sheet will continue to differentiate us in the cannabis industry, and we remain focused on the highest return opportunities for growth.”
Carl Merton, Aphria’s Chief Financial Officer commented, “We are updating our annual outlook with a little over four months left in our fiscal year to reflect certain market dynamics that have evolved relative to our initial expectations. We look forward to generating an acceleration in our revenue and profit growth in the second half of the fiscal year and continue to believe the Canadian and international cannabis industry outlook remains robust. Aphria is well positioned for long-term sustainable growth as we continue to manage the controllable aspects of our business.”
For FY 2020 the company announced that the opening of retail locations in Ontario will slow as recent ban of vape products in Alberta have forced the company to re-evaluate the impact of vape products, increased costs of third-party supplies due to the timing of the receipt of Aphria Diamond’s license. Net revenue is expected to range from CAD 575 Million to CAD 625 Million and an adjusted EBITDA of CAD 35 Million to CAD 42 Million.
Aphria is down over 5% on pre-market trading post announcement.