Aphria Inc (TSX: APHA) (NASDAQ: APHA) this morning reported their third quarter financial results. The company reported net revenues of $153.6 million, a decline from the prior quarter, along with a net loss of $361.0 million, strongly missing consensus estimates from analysts.
Net revenues declines 4.3% from the prior quarter’s $160.6 million figure, with the largest decline coming from the cannabis segment, missing consensus estimates of $170.66 million rather significantly. Cannabis revenue fell from $67.9 million to $51.7 million on a net basis, while distribution revenue fell from $91.7 million to $87.1 million. Beverage alcohol revenue meanwhile climbed from $0.9 million to $14.8 million. Adjusted EBITDA meanwhile came in at $12.7 million, missing consensus estimates of $14.46 million.
Looking specifically at the cannabis operation, the company saw its total kilograms sold decline from 26,730 to 18,695, while the all-in cost of goods sold per gram rose from $1.30 to $1.54 over the quarter.
Costs of goods sold on revenues of $153.6 million came in at $115.9 million, resulting in gross profits of $37.8 million before fair value adjustments. Operating expenses meanwhile came in at $100.0 million, meaning the company is nowhere near profitability. General and administrative expenses amounted to $26.1 million for the quarter, while share based compensation during the quarter climbed to $36.3 million. Transaction costs meanwhile hit $12.0 million, while selling expenses came in at $7.6 million.
The firms operating loss of $68.3 million meanwhile was further dragged down by financing expenses of $10.0 million, and non-operating expenses of $276.5 million. Much of the latter was attributed to an unrealized loss on convertible debentures of $264.8 million. Overall, the company reported a net loss of $361.0 million.
Looking to the balance sheet, Aphria saw its cash position improve from $188.0 million to $267.1 million over the quarter, while inventory fell slightly from $321.5 million to $313.8 million. Receivables also dropped, hitting $81.9 million as compared to $96.2 million in the prior quarter. Total current assets overall climbed from $692.1 million to $730.7 million.
Accounts payable meanwhile was also down, dropping from $254.3 million to $168.2 million. Income taxes payable meanwhile rose from $16.6 million to $21.2 million, while bank indebtedness fell from $5.1 million to nil. Overall, current liabilities fell from $293.0 million to $217.0 million.
Aphria Inc last traded at $20.36 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.