Aphria drops 19% on deep quarterly loss

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Shareholders of Aphria (NASDAQ: APHA) were hoping the cannabis company would post net profit again when it reported its fourth quarter 2020 tax results on Wednesday morning. They did not achieve their wish.

In fact, for the period ended May 31, the Canadian jar supplier reported a pretty dramatic loss of C $ 98.8 million ($ 73.9 million), or C $ 0.39 ( $ 0.29) per share, which is in sharp contrast to the C $ 5.7 million ($ 4.3 million). ) profit made during the previous quarter.

Image source: Getty Images.

However, much of this decline in results was due to the C $ 64 million ($ 48 million) of impairment charges that he took “on some of the company’s international operations in response to the COVID-19 pandemic. ”

More encouragingly, Aphria managed to increase its net sales by 5% from the fiscal third quarter and by 18% on an annual basis to 152 million Canadian dollars (114 million dollars). This despite a 10% year-over-year decrease in kilograms and kilogram equivalents sold.

On average, analysts who track the stock estimated that it would register just under C $ 147 million ($ 110 million) on the top line, with a net loss per share of C $ 0.04 (0 , 03 dollar).

The company didn’t offer any advice, but CEO Irwin Simon said: “With the launch of exciting new product categories and line extensions in the very near future, we believe our award-winning adult portfolio remains. unmatched in the industry. ”

Aphria also said it has filed a prospectus return for an issue of secondary common stock in the market of up to $ 100 million. At the time of this writing, its market capitalization was $ 1.29 billion.

Investors weren’t happy with what they saw. On Wednesday, they lowered marijuana stock by more than 19%, while the broader market, as measured by the S&P 500 Index, rose 1.24%.



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