Aphria Posts Revenues of $160.5 Million, Loss Of $120.6 million In Q2 2020
Aphria Inc (TSX: APHA) (NASDAQ: APHA) this morning reported its second quarter financial results for 2021, reporting net revenues of $160.5 million, while posting a net loss of $120.6 million. Included in the significant loss was $87.6 million related to an unrealized loss on convertible debentures, as well as transaction costs of $22.6 million and share based compensation of $13.6 million.
Net revenue improved on a quarter over quarter basis, with the firm seeing revenues rise from the $145.7 million reported last quarter to $160.5 million. Included in the revenue figure was improving cannabis revenues, which hit $67.9 million on a net basis, as compared to $63.5 million in the prior quarter. Distribution revenues also improved, climbing from $82.2 million to $91.7 million. Beverage alcohol revenue meanwhile, a function of the SweetWater transaction, came in at $0.9 million.
Despite the rise in revenues, gross profit fell from the prior quarters $43.3 million to $39.5 million. Operating expenses meanwhile came in at $82.7 million, a significant increase from the $54.5 million reported in the first quarter of 2021.
General and administrative expenses fell to $27.8 million during the quarter, down from $28.4 million previously. Selling expenses meanwhile rose marginally to $7.5 million from $7.2 million, while marketing and promotion fell to $5.3 million from $6.1 million. The largest change in terms of expenses was share based compensation, which rose from $4.3 million to $13.6 million, while transaction costs climbed from $3.0 million to $22.6 million.
In terms of other expenses, the company saw financing expenses fall from $7.2 million to $6.1 million. However, the company took a large charge in terms of non-operating expenses, which grew from $17.3 million to $89.8 million, which assisted in propelling the company to a net loss of $120.6 million, compared to a loss of $5.1 million last quarter.
Looking to the balance sheet, Aphria saw its cash and cash equivalents tumbled from $400.0 million to $188.0 million, a function of the $341.8 million paid on business acquisitions. This was however partially offset by the receipt of nearly $127.5 million in cash proceeds from the issuance of share capital.
Accounts receivable meanwhile climbed to $96.2 million, up from $82.5 million, while inventory was effectively flat at $321.5 million. Prepaids fell marginally from $51.3 million to $48.2 million. Overall, total current assets declined from $891.5 million to $692.1 million.
Current liabilities meanwhile skyrocketed northward, with accounts payable more than doubling from $124.4 million to $254.3 million. Bank indebtedness fell however, declining from $7.9 million to $5.1 million, while income taxes payable fell from $21.6 million to $16.6 million. Current portion of long term debt meanwhile climbed from $10.8 million to $15.2 million. Overall, total current liabilities climbed from $166.0 million to $293.0 million.
That significant climb in payables is also likely why the company closed a US$120 million financing with BMO, consisting of a $20 million revolver and the remainder being classified as term debt.
The company did not provide guidance within its release this morning.
Aphria Inc last traded at $12.70 on the TSX.
Information for this briefing was found via Sedar and Aphria Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
