Aphria Stock Jumps 31% After Quarterly Report Shows Cannabis Sales Volume Doubled
Aphria Inc. (NYSE: APHA) released on August 1st the company’s quarterly earnings for the 4th quarter that ended on May 31st. The content of the quarterly report surprised many investors because, for the first time since recreational cannabis was legalized in Canada on October 18th, the company posted a profit margin. Not only did Aphria post a profit, it successfully doubled the volume of cannabis sales from the past quarter. It is reported that the company’s 4th quarter sales came to a total net revenue of $128.6 million and that the total net revenue represents a 75% increase when compared to the previous quarter.{{cta(‘90438494-6bd0-4c05-aee6-ee36a536f0d4′,’justifycenter’)}}
The company sold 5,574 kilograms of cannabis in the 4th quarter and generated $28.6 million. In the previous quarter, Aphria only sold 2,636 kilograms of cannabis for $15.4 million. CC Pharma, based in Densborn, Germany, is credited with sales revenue of $99.2 million for Aphria. The company acquired CC Pharma for $60 million earlier this year in January.
Aphria’s stock value was $5.20 per share at the time of market close on August 1st, but increased significantly in after-hours trading. Within after-hours trading, APHA closed for the day at $6.85 per share. The value of APHA shares hit a peak of $6.92 per share, a 33.08% increase in value, and closed for the day at a 31.73% increase in value.
Irwin Simon, Interim CEO and Independent Chairman of Aphria’s Board of Directors, stated: “Our team’s solid execution across key areas of our business resulted in strong adult-use revenue growth and a profitable fourth quarter. The most important thing for me was getting Leamington right so that we would be able to get our supply out there.”
The focus of Aphria lately, under the decision of its interim CEO Irwin Simon, has been the Leamington cultivation facility. The Leamington cultivation facility, or Aphria One, has 700,000 square feet of cultivation space that is now entirely in use. The company planted 200,000 cannabis plants within Aphria One in the previous quarter. Aphria’s other cannabis cultivation facility, Aphria Diamond, is 1.2 million square feet and is yet to receive approval in the form of a license from Health Canada.
“That’s my next priority — getting Diamond licensed and up and running,” said Irwin.
Aphria expects to have an annual production capacity of at least 255,000 kilograms after all of the company’s cultivation facilities are licensed and at full cultivation capacity.
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Note: The author of this article does hold a current position with Aphria stock.
Aphria Stock Jumps 31% After Quarterly Report Shows Cannabis Sales Volume Doubled
