Aphria shares drop 13% as results trail consensus; top line hit by lockdowns across Canada

Tiger Newspress2021-04-12

(April 12) Aphria shares plummet 9% premarket after fiscal Q3 2021 results misses consensus. (All figures are in C$).

  • Net revenue of $153.6M, +6.4% and a decrease of 4.3% Q/Q, missed analyst expectations of $163.3M.
  • Net cannabis revenue of $51.7M, 7.8% lower from FQ3 2020, and down 23.8% from prior quarter.
  • Gross revenue for adult-use cannabis of $59.6M, +33.4% Y/Y, and a decline of 17.3% Q/Q.
  • FQ3 revenues were impacted by lockdowns in the major Canadian provinces and in Germany.
  • Adjusted cannabis gross margin of 39.2% vs. 45.9% in prior quarter.
  • For FQ3 2021, APHA missed its non-GAAP/GAAP EPS forecast. The company reported non-GAAP loss/share of $0.15/share and GAAP loss/share of $1.14.
  • Kilograms sold: 18,695, a decrease of 30.1% compared to sales of 26,730 in Q2 2021.
  • Cash cost to produce dried cannabis per gram of $0.90, +13.9% Q/Q.
  • Adjusted EBITDA rose slightly in FQ3 to $12.7M compared prior quarter; Adjusted EBITDA from cannabis business fell to $7.9M compared to $12.9M in FQ2 2021.
  • Cash provided by operating activities of $1.2M vs. $3.4M in FQ2 2021.

Conference call is set for 9 ET.

Also, during FQ3, the company reached agreementto combine with Tilray.

Aphria is also in this week's Seeking Alpha Catalyst Watch as the company hosts a special meeting onApril 16 to vote on the proposed merger with Tilray.

Other pot stocks down this morning include: Tilray -10.93%, Aurora Cannabis -6.08%.

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