The last time we discussed APHRIA INC COM NPV (OTCMKTS:APHQF), a stock that we keep very close tabs on, we were talking about a huge equity investment the company made in the merged vehicle of its Tokyo Smoke partner and another Canadian cannabis company.
The time before that, it was Aphria’s deal with Canada’s largest pharmacy goods provider, Shoppers Drug Mart. In fact, it seems as if we’re always relaying positive reports from the company to our readers, and it shows on the chart. We were covering this stock back in June when it was trading in the mid-3.00 range, and it has recently surpassed $18/share.
This week, APHRIA INC COM NPV (OTCMKTS:APHQF) has released good news in the form of financial highlights for the most recent quarter, during which time it remained focused on product innovation for both the medical and adult-use market, built on its expansion plans in both domestic and international markets, and explored strategic investments and other opportunities to drive shareholder value.
Revenue (amounts in Canadian Dollars) for the three months ended November 30, 2017 was $8,504,000 versus $5,227,000 in the same period of the prior year, an increase of over 60% and $6,120,000 in the first quarter of fiscal 2018, an increase of almost 40%. The increase in revenue from the same period in the prior year was largely related to continued growth of both wholesale shipments and sales to existing patients, as well as continued acceleration of patient onboarding and an increased average selling price (excluding wholesale).
Gross profit for the second quarter was $6,202,000 compared to $4,121,000 in the same quarter in the prior year and $7,904,000 in the previous quarter. The increase in gross profit from the prior year is consistent with the much larger patient base over the prior year offset by the increased costs per gram equivalent and the increase in the fair value adjustment for biological assets against the decrease in the average selling price per gram equivalent. The decrease from the prior quarter is consistent with the increased costs per gram and the decrease in the net fair value adjustment related to biological assets.
During the quarter, our “all-in” costs of sales of dried cannabis per gram temporarily increased from $1.61 to $2.13. the increase, Aphria continues to have one of the lowest costs per gram in the industry.
Net income for the three months ended November 30, 2017 was $6,455,000 or $0.05 per share compared to a net income of $945 or $0.01 per share in the same period of the prior year.
Adjusted EBITDA from operations for the quarter was $1,621,000 compared to $1,699,000 in the prior quarter. The decrease in the quarter, despite the increase in adjusted gross profit of almost $1,000,000 relates primarily to a $900K increase in selling, marketing and promotion, related to investments in the development of adult-use brands and increases in patient acquisition and maintenance costs consistent with the increase in revenue. (Source: Canada Newswire)
Aphria remained one of our favorite topics of discussion throughout all of 2017, and now, in 2018, it appears as if we’re set for more of the same. The months are rapidly ticking down to Canada’s nationwide legalization coming in July, so the story on this stock is only going to get more exciting as the big day approaches. We’ll stay up on any further developments with APHQF and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free smallcap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in APHQF stock, short or long.