Aphria Inc. (NASDAQ:APHA) has become the first major Canadian cannabis producer to report a net profit.
The Leamington, Ontario-based cannabis company said Thursday after markets closed that it earned $15.8 million in the quarter ended May 31 on revenue of $129 million. The revenue figure beat the highest analyst estimate and was up 75% from the prior quarter.
The positive results sent Aphria’s U.S. shares soaring 33% in pre-market trading Friday. The results are a shift from last quarter when Aphria reported a significant drop in gross margin, revenue that missed expectations and a $50-million writedown on its Latin American assets.
In the latest quarter, Aphria reported revenue from recreational cannabis sales of $18.5 million, up 158% from the prior quarter. It also cost Aphria less to produce pot, with cash cost per gram of dried cannabis falling to $1.35 from $1.48.
Aphria said it expects to generate net revenue of $650 million to $700 million in fiscal 2020, which ends May 31, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $88 million to $95 million. Analysts expected revenue of $701 million and EBITDA of $46 million.
