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Aphria Tumbles 18% on Q1 Results

By Eric Volkman – Oct 15, 2020 at 4:39PM

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The company's net loss was slightly narrower than analysts expected, but...

Aphria (APHA) didn't exactly provide a high for its investors on Thursday. The Canada-based marijuana company released fiscal 2021 first-quarter results that were full of red ink and substantially worse than analyst expectations.

For the quarter, Aphria's net revenue was 145.69 million Canadian dollars ($110.86 million), which was 16% higher on a year-over-year basis but 4% lower than the fiscal fourth-quarter 2020 tally. On the bottom line, the company flipped to a comprehensive loss of nearly CA$5.1 million ($3.9 million) from the year-ago profit of CA$14.8 million ($11.3 million), although the Q4 result -- a loss of over CA$97 million ($74 million) -- was far deeper.

Marijuana bud on fire.

Image source: Getty Images.

On a per-share basis, the CA$0.02 ($0.02) deficit was slightly narrower than the average analyst expectation of CA$0.03 ($0.02). However, those prognosticators were collectively modeling almost CA$160 million ($122 million) on the top line, so Aphria missed that by a wide margin.

While the company did well in its core activity of marijuana sales, boosting its take for the category by 134% to over CA$82 million ($62 million), other key metrics trended negative. One was distribution revenue, which slipped by 14% to roughly the same amount; another key metric was excise taxes, which tripled and then some to hit nearly CA$20 million ($15 million).

It seems that investors were pleased with none of this, particularly given the marijuana sector's long and painful history of booking losses. Aphria's shares fell by over 18% on Thursday, dragging down numerous other marijuana stocks along with them.

Eric Volkman 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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