Aphria Inc. Announces 65% Increase in Net Income from Cannabis Compared to Previous Quarter and Fourth Consecutive Quarter of Positive Adjusted EBITDA

0
55


$ 8.7 million
Adjusted EBITDA of the Cannabis activities of $ 6.0 million 78% increase from the previous quarter
The cash cost per gram has decreased below $ 1
Updates on the impact of COVID-19 and the guidelines for fiscal year 2020“Data-reactid =” 17 “>Announces operating results $ 8.7 million
Adjusted EBITDA of the Cannabis activities of $ 6.0 million 78% increase from the previous quarter
The cash cost per gram has decreased below $ 1
Updates on the impact of COVID-19 and the guidelines for fiscal year 2020

April 14, 2020 / CNW / – Aphria Inc., (” Aphria “Or the” Business“) (TSX: APHA & nbsp; and NYSE: APHA), one of the world’s leading cannabis companies, today announced financial results for the third quarter ended February 29, 2020. All amounts are expressed in Canadian dollars, unless otherwise indicated and except for grams, kilograms, kilogram equivalents and per share. “Data-reactid =” 18 “> LEAMINGTON, ON, April 14, 2020 / CNW / – Aphria Inc., (” Aphria “Or the” Business“) (TSX: APHA and NYSE: APHA), a major global cannabis company, today announced financial results for the third quarter ended February 29, 2020. All amounts are expressed in Canadian dollars, unless otherwise indicated and except for grams, kilograms, kilogram equivalents and per share.

Aphria Inc. (CNW Group / Aphria Inc.)

Irwin D. Simon, President and CEO. “During this unprecedented period, the well-being of our employees, patients, consumers, partners and the communities in which we operate is our main objective. Our patient care facilities, offices and teams remain open and operational to continue providing our patients and consumers with what we believe to be & nbsp; best-in-class care and service with appropriate measures in place to protect the health and safety of employees. As we go through a period of uncertainty, I am proud of how the Aphria team has come together to navigate these unknown waters. Looking ahead, we believe Aphria continues to be differentiated in the cannabis industry thanks to our brands, our growing expertise, our high quality standards, our cash flow and our balance sheet. We continue to focus on the highest yield opportunities for growth and long-term value creation. “” Data-reactid = “31”> “We are proud of our continued growth in Canada and the continued expansion of our international capabilities,” said Irwin D. Simon, President and CEO. “During this unprecedented period, the well-being of our employees, patients, consumers, partners and the communities in which we operate is our main objective. Our patient care facilities, offices and teams remain open and operational to continue providing our patients and consumers with what we believe to be the best care and services in their class with appropriate measures in place to protect health and safety employees. As we go through a period of uncertainty, I am proud of how the Aphria team has come together to navigate these unknown waters. Going forward, we believe Aphria continues to be differentiated in the cannabis industry thanks to our brands, our growing expertise, our high quality standards, our cash flow and our balance sheet. We continue to focus on the highest yield opportunities for growth and long-term value creation. ”

  • Gross revenue for adult cannabis from $ 44.7 million in the third quarter, an increase of 54% over the previous quarter and the 5e consecutive quarter of growth.
  • Net cannabis income from $ 55.6 million in the third quarter, an increase of 65% compared to the previous quarter.
  • Net income from $ 144.4 million in the third quarter, an increase of 96% compared to the quarter of the previous year and an increase of 20% compared to the previous quarter.
  • Operating profit from $ 8.7 million in the third quarter, against a loss of $ 9.6 million in the previous quarter.
  • Net income from $ 5.7 million, or $ 0.02 per share and adjusted EBITDA of $ 5.7 million in the third quarter.
  • Adjusted EBITDA from cannabis operations of $ 6.0 million in the third quarter, an increase of 78% compared to the previous quarter.
  • Completed third quarter with solid balance sheet and liquidity, including $ 515.1 million of cash and cash equivalents to finance expected growth in Canada and abroad.
  • Received its European Union Good Manufacturing Practice (“EU GMP”) certification from the Malta Medicines Authority (“MMA”) of the company’s subsidiary, ARA – Avanti Rx Analytics, as well as the GMP appendix of Aphria One, which enables the Company to start supplying medical cannabis across the European Union and to strengthen the Company’s international export capabilities.
  • Capital increase of $ 100 million, further strengthening the balance sheet.
  • Recognized for the diversity of men and women in management by Globe and Mail’s inaugural Report on the businesswomen in mind here list, an annual reference for the diversity of men and women executives in Canadian companies.
  • (In thousands of Canadian dollars)

    Three months ended

    Three months ended

    February 29, 2020

    February 28, 2019

    Net revenue

    $ 144,424

    $ 73,582

    Gross profit

    $ 59,575

    $ 17,295

    Adjusted gross profit from cannabis 1

    $ 23,744

    $ 5,808

    Adjusted cannabis gross margin 1

    42.7%

    36.3%

    Adjusted gross distribution profit 1

    $ 11,397

    $ 7,854

    Adjusted gross distribution margin 1

    12.9%

    13.6%

    Net profit (loss)

    $ 5,697

    ($ 108,209)

    Adjusted EBITDA 1

    $ 5,736

    ($ 14,435)

    Q3-2020

    T2-2020

    Distribution income

    $ 88,308

    $ 86,442

    Net cannabis income

    $ 55,566

    $ 33,708

    Net revenue

    $ 144,424

    $ 120,600

    Kilograms (or equivalent kilograms) sold 1

    14,014

    7,062

    Cash cost to produce dried cannabis / gram1

    $ 0.93

    $ 1.11

    “All inclusive” cost of products sold / gram1

    $ 1.69

    $ 1.98

    Adjusted EBITDA from cannabis activities 1

    $ 6,031

    $ 3,386

    Adjusted EBITDA from activities under development 1

    ($ 2,859)

    ($ 3,547)

    Adjusted EBITDA from distribution operations 1

    $ 2,564

    $ 2,064

    Cash and cash equivalents and marketable securities

    $ 515,102

    $ 497,694

    Working capital

    $ 746,572

    $ 675,932

    Capital and intangible assets – wholly owned subsidiaries1

    $ 23,839

    $ 8,230

    February 29, 2020 was $ 144.4 million, an increase of 96% $ 73.6 million at the same time last year. Net revenues for the third quarter of fiscal 2020 increased by 20% compared to net revenues for the previous quarter of $ 120.6 million, mainly due to an increase in net cannabis revenues from sales to provincial control boards. Net revenues included 8,171 kilograms of equivalents sold for the adult consumer market, 1,352 kilograms of equivalents for sales of medical cannabis, and 4,491 kilograms of equivalents sold for the wholesale market. “Data-reactid =” 56 “> Net sales for the three months ended February 29, 2020 was $ 144.4 million, an increase of 96% $ 73.6 million at the same time last year. Net revenues for the third quarter of fiscal 2020 increased by 20% compared to net revenues for the previous quarter of $ 120.6 million, mainly due to an increase in net cannabis revenues from sales to provincial control boards. Net revenues included 8,171 kilogram equivalents sold for the adult consumer market, 1,352 kilogram equivalents for sales of medical cannabis and 4,491 kilogram equivalents sold for the wholesale market.

    $ 6.41 per gram in the quarter, compared to $ 8.16 in the previous quarter, mainly related to the implementation of a compassionate pricing policy during the quarter. The average selling price of adult cannabis, before excise tax, increased to $ 5.47 per gram during the quarter, compared to $ 5.22 per gram in the previous quarter, mainly due to a change in the composition of sales. “Data-reactid =” 57 “> The average retail price of medical cannabis (excluding wholesale), before excise tax, decreased to $ 6.41 per gram during the quarter, compared to $ 8.16 in the previous quarter, mainly related to the implementation of a compassionate pricing policy during the quarter. The average selling price of adult cannabis, before excise tax, increased to $ 5.47 per gram during the quarter, compared to $ 5.22 per gram in the previous quarter, mainly due to a change in the composition of sales.

    $ 20.2 million, with gross profit of $ 5.1 million and a gross margin of 25.2%. & nbsp; If the company had been able to use cultivated cannabis, at the “all inclusive” price of dried cannabis sales per gram reported this quarter, the company would have reported an additional $ $ 7.6 million gross margin and adjusted EBITDA2. “Data-reactid =” 58 “> As noted previously, customer demand exceeded the company’s supply capabilities in the third quarter due to the timing of the license receipt from Aphria Diamond and, as a measure In the short term, the company purchased a product from other authorized producers in order to supplement its short-term supply capabilities. Purchases of wholesale products have resulted in increased costs and margin opportunities for these sales. During the quarter, sales of purchased cannabis represented $ 20.2 million, with a gross profit of $ 5.1 million and a gross margin of 25.2%. If the company had been able to use cultivated cannabis, at the “all inclusive” price of dried cannabis sales per gram reported this quarter, the company would have reported an additional $ $ 7.6 million gross margin and adjusted EBITDA2.

    $ 23.7 million, with a cannabis gross profit of 42.7%, against $ 19.1 million with a cannabis gross margin of 56.6% in the previous quarter. The decrease in cannabis gross margin is mainly due to the sale of cannabis purchased from another wholesaler and the wholesale sale of cannabis. “Data-reactid =” 59 “> The gross profit related to cannabis for the third quarter was $ 23.7 million, with a cannabis gross profit of 42.7%, against $ 19.1 million with a cannabis gross margin of 56.6% in the previous quarter. The decrease in the cannabis gross margin is mainly due to the sale of cannabis purchased from another wholesaler and the wholesale sale of cannabis.

    $ 11.4 million, with a gross distribution margin of 12.9% compared to $ 11.0 million with a gross distribution margin of 12.7% in the previous quarter. “Data-reactid =” 60 “> The gross distribution profit for the third quarter was $ 11.4 million, with a gross distribution margin of 12.9% compared to $ 11.0 million with a gross distribution margin of 12.7% in the previous quarter.

    $ 50.9 million $ 49.2 million in the previous quarter, and decreased by $ 106.6 million the previous year. & nbsp; The increase compared to the previous quarter is mainly related to $ 1.8 million increased transaction costs and an increase in staff at all levels of the organization as the company moves to an annual growing capacity of up to 255,000 kg. These increases were partially offset by a decrease in equity compensation from $ 2.4 million. “Data-reactid =” 61 “> Selling, general and administrative expenses for the quarter increased to reach $ 50.9 million of $ 49.2 million in the previous quarter, and decreased by $ 106.6 million the previous year. The increase compared to the previous quarter is mainly related to $ 1.8 million increased transaction costs and an increase in staff at all levels of the organization as the company moves to an annual growing capacity of up to 255,000 kg. These increases were partially offset by a decrease in equity compensation from $ 2.4 million.

    $ 5.7 million, or $ 0.02 per share, against a net loss of $ 7.9 million, or loss of $ 0.03 per share in the previous quarter and a net loss of $ 108.2 million, or loss of $ 0.43 per share for the same period last year. “Data-reactid =” 62 “> Net profit for the third quarter of fiscal year 2020 was $ 5.7 million, or $ 0.02 per share, against a net loss of $ 7.9 million, or loss of $ 0.03 per share in the previous quarter and a net loss of $ 108.2 million, or loss of $ 0.43 per share for the same period last year.

    $ 3.8 million to $ 5.7 million for the third quarter compared to $ 1.9 million in the previous quarter. Adjusted EBITDA from cannabis activities & nbsp; for the third quarter was $ 6.0 million compared to $ 3.4 million in the previous quarter. Loss of adjusted EBITDA from developing companies & nbsp; for the third quarter was $ 2.9 million compared to a loss & nbsp; of $ 3.5 million in the previous quarter. Adjusted EBITDA from distribution activities for the third quarter was $ 2.6 million, compared to $ 2.1 million previous quarter. “Data-reactid =” 63 “> Adjusted EBITDA increased by $ 3.8 million at $ 5.7 million for the third quarter compared to $ 1.9 million in the previous quarter. Adjusted EBITDA from cannabis-related activities for the third quarter was $ 6.0 million compared to $ 3.4 million in the previous quarter. Loss of Adjusted EBITDA from Developing Businesses for the Third Quarter Was $ 2.9 million compared to a loss of $ 3.5 million in the previous quarter. Adjusted EBITDA from distribution activities for the third quarter was $ 2.6 million, compared to $ 2.1 million the previous quarter.

    $ 515.1 million in cash and cash equivalents. “Data-reactid =” 64 “> The Company closed the third quarter with a solid balance sheet, including $ 515.1 million cash and cash equivalents.

    $ 575 million to $ 625 millionand adjusted EBITDA of $ 35 million at $ 42 million, for fiscal year 2020. The Company intends to restore its annual forecasts once the pandemic has stabilized, which may not happen before a point in its fiscal year 2021. “data-reactid =” 66 “> The Pandemic and its impact on the economy is constantly evolving and presents too many variables and unexpected events to accurately forecast the company’s fourth quarter results. For example, one of the following could have a significant impact on revenue levels forecast for the fourth quarter of Aphria: (i) the government of the United Kingdom or any EU the government of a country that materially supplies CC Pharma, closes its border to exports; (ii) the Government of Alberta or Ontario implements a more restrictive “on-site shelter program” or materially adjusts its planned sales orders; (iii) the current loading of the pantry ‘the levels of sales in Quebec reverse the levels of sales before the pandemic; (iv) the government of Alberta, Ontario or Quebec eliminates or reduces delivery methods for retail sales as part of a “reinforcement” “in place” program; (v) the company’s facilities in Leamington or Densborn are experiencing employee absence levels higher than the current levels associated with COVID-19; and / or (vi) the Company’s supply chain partners significantly increase their prices or experience unforeseen major disruptions in their business or have chosen to implement policy changes affecting Aphria in light of the ‘shelters on site’. Without clarity on the expected income levels of the Company, it is improbable to forecast with precision the EBITDA levels on these revised income levels. For all the factors surrounding the growing uncertainty and the short-term financial impact of the pandemic, the Company is suspending its previously announced revenue forecasts, namely $ 575 million at $ 625 millionand adjusted EBITDA of $ 35 million at $ 42 million, for fiscal year 2020. The company intends to restore its annual forecast after the pandemic stabilizes, which may not happen until a point in its fiscal year 2021.

    9:00 a.m.Eastern Time To listen to the live call, dial (888) 231-8191 from Canada and the United States or (647) 427-7450 from international sites and use the passcode 8021229. A telephone replay will be available about two hours after the call ends via April 29, 2020. To access the registration dial (855) -859-2056 and use the password 8021229. “data-reactid =” 68 “> Aphria executives will hold a conference call to discuss these results today at 9:00 a.m.Eastern Time. To listen to the live call, dial (888) 231-8191 from Canada and the United States or (647) 427-7450 from international sites and use the passcode 8021229. A telephone replay will be available about two hours after the call ends via April 29, 2020. To access the registration dial (855) -859-2056 and use the access code 8021229.

    A live simultaneous webcast will also be available in the Investors section of Aphria’s website at aphriainc.com. The webcast will be archived for 30 days.

    We have a good thing that is growing.

    Aphria Inc. is a leading global cannabis company, driven by relentless commitment to our people, the planet, product quality and innovation. Based in Leamington, Ontario – the greenhouse capital of Canada – Aphria Inc. sets the standard for the low-cost production of high-quality, large-scale cannabis grown under the most natural conditions possible. By focusing on untapped opportunities and backed by the latest technology, Aphria Inc. is committed to bringing revolutionary innovation to the global cannabis market. The company’s brand portfolio is based on carefully researched consumer ideas designed to meet the needs of each consumer segment. Rooted in the multi-generational expertise of our founders in commercial agriculture, Aphria Inc. generates long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion.

    aphriainc.com “data-reactid =” 73 “> For more information, visit: aphriainc.com

    CAUTION REGARDING FORWARD-LOOKING STATEMENTS: Certain information contained in this press release constitutes forward-looking information or forward-looking statements (together, “forward-looking statements”) under applicable securities laws and is expressly qualified by this release keep. Any information or statements contained in this press release that are not statements of historical fact may be considered forward-looking statements, including, but not limited to, statements made in this press release regarding market position of Aphria, the ability to generate constant growth, net revenues and adjusted EBITDA and the ability to restore forecasts. The Company uses terms such as “forecast”, “future”, “should”, “could”, “allow”, “potential”, “consider”, “believe”, “anticipate”, “estimate”, “plan” , “Wait”, “intend”, “may”, “plan”, “want”, “would like” and the negative of these similar terms or expressions to identify forward-looking statements, although not all forward-looking statements contain not these identifying words. Various assumptions have been used to draw the conclusions contained in the forward-looking statements throughout this press release. Forward-looking statements reflect management’s current beliefs about future events and are based on information currently available to management, including on the basis of reasonable assumptions, estimates, internal and external analyzes and of management’s opinions, taking into account its experience, its perception of trends, current and expected conditions. developments as well as other factors that management considers relevant as of the date of these statements. Forward-looking statements involve known and unknown significant risks and uncertainties. There are many factors that could cause actual results, performance or achievement to differ significantly from any future-looking statement. Factors that may cause such differences include, but are not limited to, the risks associated with COVID-19 at the national and global levels which could have a material adverse effect on Aphria’s business, operations and financial results, including disruptions in culture and processing, supply chains and sales channels, as well as a deterioration in general economic conditions, including national and / or global recessions and the response of governments to the pandemic of COVID-19 for the operation of retail stores; general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments regarding cannabis or otherwise affecting the activities of Aphria or its consumers in general; inability to access sufficient capital from internal and external sources and / or inability to access sufficient capital on favorable terms; the cannabis industry in Canada in general; fiscal and regulatory issues, including delays in issuing licenses; the sale and distribution of vapes; Aphria’s ability to meet its liquidity needs to finance its day-to-day operations; Aphria’s ability to execute its business strategies; competition; poor harvests; safety of cannabis products; currency and interest rate fluctuations.

    February 29, 2020, each available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. & nbsp; Readers are also cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they will be placed will materialize. This information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. “Data-reactid =” 75 “> Readers are cautioned that the foregoing list is not exhaustive and should be considered as other factors considered under the heading” Risk Factors “in the most recent Aphria Annual Information Form and under the heading “Industry trends and risks” in the Aphria management report for the three and nine months ended February 29, 2020, each available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Readers are also cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they will be placed will materialize. This information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

    The forward-looking statements included in this press release are made as of the date of this press release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise, unless required by the applicable titles. laws. Neither the TSX nor its regulatory service provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

    February 29, 2020 and filed on SEDAR at www.sedar.com & nbsp; and on EDGAR at www.sec.gov. This appendix does not contain all of the information in Aphria Inc.’s financial statements that is important to you. You should read the financial statements and MD&A carefully for a complete understanding of the financial statements of Aphria Inc. and the notes thereto under IFRS and related information. « Data-reactid = » 77 « > Le tableau ci-dessous est un extrait de États financiers d’Aphria Inc. préparés sur une base conforme aux IFRS pour les trois et neuf mois terminés le February 29, 2020 et déposé sur SEDAR à www.sedar.com et sur EDGAR à www.sec.gov. Cette annexe ne contient pas toutes les informations des états financiers d’Aphria Inc. qui sont importantes pour vous. Vous devriez lire attentivement les états financiers et le rapport de gestion pour obtenir une compréhension complète des états financiers d’Aphria Inc. et des notes y afférentes en vertu des IFRS et des informations connexes.

    Pour les trois mois terminés
    February 29

    Pour les neuf mois terminés
    February 29

    Note

    2020

    2019

    2020

    2019

    Recettes provenant des produits du cannabis

    64 424 $

    18 407 $

    139 275 $

    55 077 $

    Revenus de distribution

    88 308

    57 599

    270 077

    58 745

    Récupération d’assurance

    550

    1,000

    Droits d’accise

    (8 858)

    (2 424)

    (19 216)

    (5 280)

    Revenu net

    144,424

    73 582

    391 136

    108,542

    Coûts de production

    5

    16 707

    10 471

    46 055

    25 705

    Coût du cannabis acheté

    15 115

    15 850

    Coût des marchandises achetées

    76 911

    49 745

    235 498

    50 856

    Bénéfice brut avant ajustements de juste valeur

    35,691

    13,366

    93 733

    31 981

    Ajustement de la juste valeur à la vente des stocks

    5

    16,383

    5,542

    36 060

    18 075

    Ajustement de la juste valeur sur la croissance des actifs biologiques

    6

    (40 267)

    (9 471)

    (86 912)

    (23.136)

    Bénéfice brut

    59,575

    17,295

    144,585

    37 042

    Dépenses d’exploitation:

    général et administratif

    23

    27 920

    22,434

    72 301

    43 561

    Rémunération fondée sur des actions

    24

    5 126

    14 300

    17,645

    22,996

    Marketing et promotion

    4,185

    6 241

    16 611

    18 918

    Sale

    5,089

    707

    12 731

    1 107

    Amortissement

    5 352

    3,665

    16 256

    9,556

    Recherche et développement

    710

    223

    1 992

    1 097

    Dépréciation

    58 039

    58 039

    Coûts de transaction

    2,478

    942

    3 904

    2 930

    50 860

    106,551

    141 440

    158 204

    Bénéfice (perte) d’exploitation

    8 715

    (89 256)

    3,145

    (121.162)

    Produits (charges) financiers, nets

    25

    (7 352)

    3,579

    (17 615)

    9 493

    Résultat hors exploitation, net

    26

    9,848

    (33 995)

    34 719

    79 811

    Pre-tax profit (loss)

    11,211

    (119 672)

    20 249

    (31 858)

    Impôts sur le résultat (récupération)

    15

    5,514

    (11 463)

    6 040

    401

    Bénéfice (perte) net

    5 697

    (108.209)

    14,209

    (32 259)

    Autres éléments du résultat global

    Autres éléments du résultat global

    (734)

    (61)

    (2 729)

    (61)

    Résultat global (perte)

    4 963 $

    (108 270)

    11 480 $

    $ (32,320)

    Le résultat global total est attribuable à:

    Actionnaires d’Aphria Inc.

    5 893

    (107 886)

    12 944

    (31 529)

    Intérêt ne donnant pas le contrôle

    22

    (930)

    (384)

    (1 464)

    (791)

    4 963 $

    (108 270)

    11 480 $

    $ (32,320)

    Nombre moyen pondéré d’actions ordinaires – de base

    257 517 234

    250.149.598

    253 477 710

    240,106,147

    Nombre moyen pondéré d’actions ordinaires – dilué

    257 955 708

    250.149.598

    254 010 666

    240,106,147

    Bénéfice (perte) par action – de base

    28

    0,02 $

    $ (0.43)

    0,06 $

    $ (0.13)

    Bénéfice (perte) par action – dilué

    28

    0,02 $

    $ (0.43)

    0,06 $

    $ (0.13)

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here