Aphria Inc (TSX: APHA) (NASDAQ: APHA) this morning reported its first quarter 2021 financial results, reporting declining net revenues of $145.7 million and a comprehensive loss of $2.62 million. Revenues declined on a quarterly basis as a result of distribution revenue, which fell from $99.1 million in the fourth quarter to $82.2 million in the first quarter.
While distribution revenue fell, largely a result of seasonality, the firm posted significant growth in net cannabis revenue, which climbed from $53.1 million in the fourth quarter to $62.5 million in the current quarter, an increase of 17.8%. Notably, the company significantly improved the amount of cannabis sold, with 20,882 kilograms sold in the first quarter, compared to 12,557 kilograms in the fourth quarter, a massive increase of 66.0%, a function of new large format offerings.
In terms of gross profits, after production costs of $28.4 million, cost of cannabis purchased of $3.5 million, and cost of goods purchased of $70.4 million, the company managed to post a gross profit before fair value adjustments of $43.3 million. This compares to expenses of $54.5 million.
Expenses largely consisted of general and administrative, at $28.4 million, followed by selling at $7.2 million and marketing and promotion at $6.1 million. The company was then further impacted by finance expenses of $7.2 million, and non-operating income expenses of $17.3 million. Thanks to a large “fair value adjustment” in terms of gross profit, the company was able to eke out a comprehensive loss of only $2.6 million.
Looking to the balance sheet, the firms cash position declined considerably over the quarter, falling from $497.2 million to $400.0 million, while inventory grew from $264.3 million to $321.3 million. Prepaids and other current assets also increased over the quarter, climbing from $43.0 million to $51.3 million. Total current assets overall fell from $903.3 million to $891.5 million.
On the other side of the balance sheet, bank indebtedness rose from $0.5 million to $7.9 million, while accounts payable fell from $152.8 million to $124.4 million. Income taxes payable rose to $21.6 million from $6.4 million, while the current portion of long term debt also rose, from $8.5 million to $10.8 million. Despite the large pay down in debt, current liabilities fell from $170.4 million to $166.0 million.
Aphria Inc last traded at $7.71 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.