Aphria Inc. (NYSE: APHA) shares plunged by 13% on Monday morning after reporting it third quarter financial results. The cannabis-based Company reported that losses continued to widen, however, it saw revenue surge year-over-year.
For the quarter, Aphria reported earnings loss of CAD 43 cents per share on revenue of CAD 73.6 Million. The Company’s earnings plummeted from a profit of CAD 8 cents per share the same quarter a year prior. Meanwhile, revenue surged by 240% sequentially and 617% year-over-year.
Kilograms sold fell to 2,636.5 from 3,408.9, while the average retail selling price for medical cannabis increased to CAD 8.03 per gram from CAD 7.51 per gram. The average selling price of adult-use cannabis declined to CAD 5.14 per gram from CAD 6.32 per gram sequentially. The cash cost to produce dried cannabis per gram increased to CAD 1.48 from CAD 1.34 per gram.
Among the kilograms sold within the quarter, Aphira highlighted that 1,329 kilograms were sold for the Canadian adult-use market and 1,274 kilograms were for medical cannabis sales.
The Company noted that the decrease in cannabis revenue and kilograms sold was primarily related to supply shortages as the Company transitioned growing methods during the late fall and early winter, as well as temporary packaging and distribution challenges.
“Our organization has experienced significant change in a very short period of time which was necessary to propel the Company forward,” stated Irwin Simon, Aphria’s Chairman and Interim Chief Executive Officer, “Our Board of Directors and executive team will remain focused on the advancement of Aphria’s leadership position in the global cannabis industry and we are pleased to have announced today the appointment of two new independent directors. Aphria will continue to drive sustainable long-term shareholder value by leveraging its strong brand positioning, superior distribution model, product innovation, industrial scale cultivation and automation, medical-use leadership and strategic global platform.”
Aphria also noted that it has entered into a series of deal to accelerate the expiry date of the unsolicited offer launched by Green Growth Brands Inc.
Aphria shares have rallied by 52.72% this year despite the decline on Monday morning.