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.
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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.
