Aphria Reports Q3 Revenues Of $153.6 Million, Net Loss Of $361.0 Million

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.

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