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Aphria Reports Strong Fiscal Third-Quarter Results, Withdraws Guidance

By Prosper Junior Bakiny - Apr 15, 2020 at 3:26PM

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The cannabis company’s surprise net profit sent its shares soaring in premarket trading.

The cannabis industry has been a financial train wreck for the better part of a year, but Ontario-based Aphria (APHA) has been consistently posting solid results of late. 

Its fiscal third-quarter earnings report -- released after the bell Tuesday -- was yet another home run. During the quarter that ended Feb. 29, Aphria recorded net revenue of 144.4 million Canadian dollars, which is significantly better than the CA$120.6 million it recorded during its fiscal second quarter. The company continues to generate much of its revenue from its Germany-based subsidiary, CC Pharma, which produced net revenue of CA$86.8 million.

Aphria's revenue from the sale of cannabis products in the Canadian market was CA$55.6 million during the quarter. Also, the cannabis company recorded a gross profit of CA$59.6 million -- a 50.5% increase from the quarter before. Furthermore, Aphria recorded a net income of CA$5.7 million, after reporting a net loss of more than CA$8 million during its second quarter. The company's shares opened Wednesday about 15% higher.

Red mapple leaf surrounded by cannabis leaves.

Image Source: Getty Images.

With that said, it wasn't all good news for Aphria. "For all of the factors surrounding the growing uncertainty and the near-term financial impact of the pandemic, the Company is suspending its previously announced guidance for revenue of CA$575 million to CA$625 million, and adjusted EBITDA, of CA$35 million to CA$42 million, for fiscal 2020," management said.

Aphria plans to resume issuing guidance after the economic landscape stabilizes. And its after-hours share price gains moderated in trading Wednesday; its shares ended the day up only 3.7% from their level at Tuesday's close.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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