Aphria yanks forecast due to coronavirus after strong increase in cannabis sales

  • Aphria Chief Financial Officer Carl Merton yanked the company’s full-year guidance of C$575 million ($413.5 million) to C$625 million, telling investors in a conference call early Wednesday that executive were unable to accurately forecast the company’s year-end results due to the COVID-19 pandemic.
  • While the company’s first quarter revenue rose to C$144.4 million ($102.8 million) from C$73.58 million, C$88.3 million of the company’s sales resulted from its acquired low-margin European drug distribution business, CC Pharma.
  • Aphria’s cannabis sales net of excise taxes rose 65% to C$55.6 million.
  • The company reported late Tuesday that the company had swung to net income of C$4.96 million ($3.53 million), or 2 cents a share, from a loss of C$108.27 million, or 43 cents a share, in the year-ago period.
  • Bennett wrote in the Wednesday note that Aphria is one of the few companies posting positive sales and earnings momentum, while also having a strong liquidity position going into a period of uncertainty.

Read full article: marketwatch.com