Aphria Inc. reported its results for the second quarter ended November 30, 2019. All amounts are expressed in thousands of Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts. The Company also announced that Irwin D. Simon, will officially remove “interim” from his title, effective today. In addition to his responsibilities as Aphria’s Chairman of the Board, Mr. Simon had been serving as Interim Chief Executive Officer since February 2019.
“We are very pleased with our strong growth and execution in Canada demonstrated by our increase in adult-use cannabis revenue and positive adjusted EBITDA as a result of our compelling brands and market positioning,” said Irwin D. Simon, Chairman and Chief Executive Officer. “We are continuing to expand our capabilities internationally with solid progress during the quarter in Germany and South America and look to monetize non-core assets. We are confident in our market position and our ability to generate sustainable profit growth. I am honoured to continue to work closely with our tremendous team around the world to fuel growth and value for all of our stakeholders. Going forward, we believe our brands, cultivation expertise, cash position and balance sheet will continue to differentiate us in the cannabis industry, and we remain focused on the highest return opportunities for growth.”
Key Operating Highlights
- Revenue for adult-use cannabis of $29.0 million in the second quarter, an increase of 46% from prior quarter.
- Net cannabis revenue of $33.7 million in the second quarter, an increase of 9% from prior quarter.
- Net revenue of $120.6 million in the second quarter, an increase of 457% from prior year quarter and decrease of 4% from prior quarter.
- Net loss of $7.9 million, however reported positive adjusted EBITDA of $1.9 million in the second quarter.
- Adjusted EBITDA from cannabis operations of $3.4 million in the second quarter, an increase of 155% from the prior quarter.
- Ended quarter with a strong balance sheet and liquidity, including $497.7 million of cash and cash equivalents, to fund planned Canadian and International growth.
- Received cultivation license for its subsidiary Aphria Diamond, featuring 1.3 million square feet of greenhouse production.
- Recognized for seven awards at the 6th Annual Canadian Cannabis Awards with all five of Aphria’s medical and recreational brands receiving awards, as well as Broken Coast’s Master Grower, Kevin Anderson, winning ‘Master Grower’ accolades and Aphria’s Solei’s CBN Renew oil ‘Innovation of the Year’.
- Elected Jodi Butts to the Board of Directors.
- Strengthened executive leadership team with key appointments and promotions.
- Secured an $80 million senior secured credit facility for Aphria Diamond, strengthening the balance sheet without being dilutive to shareholders.
- Received confirmation of compliance with the requirements of the European Union’s Commission Directive 2003/94/EC relating to the Good Manufacturing Practices in respect of medicinal products for human use and investigational medicinal products for human use, from the Malta Medicines Authority at the Company’s ARA – Avanti Rx Analytics.
- Company’s Jamaican subsidiary Marigold Projects Jamaica Limited (“Marigold”) received a Processing (Tier 1) Licence from Jamaica’s Cannabis Licensing Authority (“CLA”) which permits the processing of cannabis-based products for medical, therapeutic and scientific purposes.
- Marigold also received its second Retail (Herb House) licence from Jamaica’s CLA to open a store in Negril, Jamaica.
For more information, visit: aphriainc.com