Aphria Stock Plunges On Cannabis Company's Q3 Results Ahead Of Tilray Merger
Aphria generated CA$153.6 million ($122.5 million) in net third-quarter revenue. That's a year-over-year increase of 6.4% and a sequential decline of 4.3%.
Net cannabis revenue amounted to CA$51.7 million, dropping by 7.8% year-over-year and 23.8% sequentially.
The Leamington, Ontario-based company reported an adjusted EBITDA gain of CA$12.7 million in the third quarter of 2021, representing the eighth consecutive quarter of positive EBITDA. Adjusted EBITDA from the cannabis business amounted to CA$7.9 million versus CA$12.9 million in the second quarter.
Gross profit was CA$31.7 million, up year-over-year from CA$59.6 million.
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The company ended the quarter with CA$267.1 million in cash and cash equivalents.
Operating expenses increased by 21% quarter-over-quarter and roughly 96% year-over-year to CA$100 million.
The net loss in the third quarter was CA$361 million, or a CA$1.14 loss per share.
"The duration and impact of lockdowns across many of the regions we operate in, particularly in Canada, were greater than we initially anticipated for the cannabis industry and our business; however, we believe Aphria remains well-positioned with our leading brands and market share to experience a robust increase in our top-line as the market improves," Irwin Simon, the company's chairman and CEO, said in a statement.
The combined company would continue to operate under the Tilray name with Simon as CEO.
The two companies have reached a definitive agreement to combine.
"We expect Aphria and Tilray's complementary cultures of innovation, brand development, and cultivation to further set us apart from others in the industry along with the strength of our balance sheet and cash availability as we enhance value for all stakeholders" Simon said.
APHA Price Action: Aphria shares were trading down 14.31% at $13.95 at last check Monday.
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