Aphria (TSX:APHA) Stock Stumbles After Reporting C$360.9M Loss

Be the First to Comment Read

Aphria (TSX:APHA) Stock Stumbles After Reporting C$360.9M Loss

 Aphria (TSX:APHA) Stock Stumbles After Reporting C$360.9M Loss

Source:HQuality, Shutterstock

Summary

  • The net revenue was down by 4.3 per cent when compared to the previous quarter's net revenue.
  • Aphria and Tilray Inc. (NASDAQ: TLRY) are all set to complete their merger soon.

Aphria Inc. (TSX: APHA) that produces and sells medicinal and recreational cannabis achieved a net revenue of C$ 153.6 million in the third fiscal quarter of 2021 (ending February 28). The net revenue was up by 6.4 per cent year-over-year (YoY).

Impacted by the lockdowns and COVID-19 restrictions in the third quarter, the net revenue was down by 4.3 per cent when compared to the previous quarter's C$ 160.5-million net revenue.

For adult-use cannabis, the gross revenue was C$59.6 million, an increase of 33.4% from year-over-year (YoY). However, it was down by 17.3% from Q2.

The gross profit was C$ 31.6 million, a decrease of about 47 per cent year-over-year.

Aphria's Adjusted EBITDA increased to C$ 12.7 billion, up by 122.8 per cent YoY.  The company's cash and cash equivalents surged to C$ 267.1 million from C$ 187.9 million in the previous quarter.

It incurred a net loss of C$ 360.9 million in Q3 2021, against a net income of C$ 5.6 million from the same comparable period last year. 

The company’s comprehensive loss was C$366.8 million ($292.7 million), or C$1.14 a share, from net income of ~C$5.0 million, or C$0.02 a share, in the year-ago period.

A Look At Aphria's Stock


In a year, the stock skyrocketed by about 361 per cent and 118.7 per cent year-to-date (YTD). It was priced at C$ 20.36 at market close on April 9, down by 50.2 against its 52-week high of C$ 40.93 (February 10, 2021).

On April 12, the stock opened at C$ 18.20 and after the financial results were announced, it stumbled by about 14.7 per cent to C$ 17.36 at around 12:06 PM ET on Monday.

The C$ 6.4-billion pot firm holds a price-to-book ratio of 3.41.

Aphria’s one-year performance chart (Source: Refinitiv)

Aphria & Tilray Set For 'MegaMerger'


Aphria and Tilray Inc. (NASDAQ: TLRY) are all set to complete their merger soon this month. The combined entity is likely to be the world's largest global cannabis company.

On April 14, Aphria will host a meeting with the shareholders to approve this proposed merger. Irwin D Simon, Chairman and Chief Executive Officer of the company said that on behalf of the board of directors, the company recommends its shareholders to vote for the resolution.

After the completion of this agreement, it is believed that the combined entity will have a Pro Forma revenue of US$ 685 million. It is also expected that the cost of processing and manufacturing weed products will reduce and the combined entity will have branded 2.0 cannabis products in Canada.

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK