It has been a rough period for the cannabis industry – the market has been down for over a year, but there are some cannabis ventures that are showing real signs of recovery and even profit. One of the leading cannabis companies, Aphria Inc., has just presented its financial results for the third quarter that ended on February 29, 2020, and reported some surprisingly positive news. The company was able to increase its adjusted EBITDA from cannabis operations by 78% year-on-year, marking the fourth consecutive quarter with a positive adjusted EBITDA.
From recreational sales, the gross sales increased 54% to a total of $31.76 million from the previous quarter – the fifth time in a row that quarterly growth was reported. Another positive figure is the net cannabis revenue of $102.6 million, which has increased by an outstanding 65% from the previous quarter. The net income was reported at $4.05 million, which is $0.014 per share, with an adjusted EBITDA of $4.05 million in the third quarter. The company has enough liquidity to continue operations, including $365.98 million of cash and cash equivalents.
Irwin D. Simon, Chairman and CEO, spoke about the latest financial reports, referring to the company’s growth not only in Canada but also in foreign lands. “During this unprecedented time, the well-being of our employees, patients, consumers, partners and the communities we operate in is our primary focus. Our facilities, offices and patient care teams remain open and operational to continue to provide our patients and consumers with what we believe is best-in-class care and service with appropriate measures in place to protect the health and safety of employees.”
Simon continued, “As we face uncertain times, I am proud of how the Aphria team has come together to navigate these uncharted waters. Going forward, we believe Aphria continues to be differentiated in the cannabis industry through our brands, cultivation expertise, high-quality standards, cash position, and balance sheet. We continue to focus on the highest return opportunities for growth and long-term value creation.”