Aphria Inc (TSE: APH) announced today that it released it’s first quarter results as well as its most recent quarter results up to August 31, 2018. The figures show a 117% increase in revenue, 35 percent increase in grams sold, as well as a net income increase of more than 40% year over year.
The key highlights of the report showed many things, most notably a significant increase in grams sold over the quarter, primarily driven by wholesale orders for clinical drug trials. Annual production in their Canada facilities current sits at 30,000 kg at their Aphria One location along with an additional 5,000 kg at their Broken Coast site. Currently, their planned capacity expansions in Canada are on schedule to reach over 250,000 kg per annum, with first sales from these new expansions expected to take place in January 2019 assuming they acquire approval from Health Canada.
“Aphria started fiscal 2019 by taking significant steps to solidify our position as a premier global cannabis company,” stated Vic Neufeld, Chief Executive Officer of Aphria. “We advanced the build out of our expansion in Leamington, signed coast-to-coast supply agreements, launched our strong portfolio of adult-use brands, and created strategic collaborations with leading companies like Perennial that will ensure Aphria continues to lead the consumer experience as the cannabis industry evolves.”
“Going forward, we are well positioned not only for the recreational market in Canada, but also the continued growth and leadership of the medical cannabis market globally,” he added. “While we experienced a short-term decline in adjusted earnings in the first quarter, we continued to ramp up our production capabilities, with our Part IV and Part V expansions of Aphria One, added considerable strength to our workforce, and continued to move forward aggressively with the implementation of our automation infrastructure, which is expected to streamline production over the medium to longer terms. We believe the automation investment in particular will provide Aphria with a significant competitive advantage and further our industry-leading low-cost structure.”
In the report, the company mentioned that they were struggling to fill open greenhouse positions due to lack of qualified labor, and with insufficient staff to handle the influx of cannabis growers in Canada, supply shortages are expected to become the norm in the market going forward. Regardless of these setbacks, the companies financial metrics were all quite healthy, with many analysts expecting continued explosive growth to come from Aphria in the future.
Company Profile
Aphria is a leading global cannabis company driven by an unrelenting commitment to our people, product quality and innovation. Headquartered in Leamington, Ontario – the greenhouse capital of Canada – Aphria has been setting the standard for the low-cost production of safe, clean and pure pharmaceutical-grade cannabis at scale, grown in the most natural conditions possible.
Focusing on untapped opportunities and backed by the latest technologies, Aphria is committed to bringing breakthrough innovation to the global cannabis market. The Company’s portfolio of brands is grounded in expertly-researched consumer insights designed to meet the needs of every consumer segment.
Rooted in our founders’ multi-generational expertise in commercial agriculture, Aphria drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion, with a presence in more than 10 countries across 5 continents. –Aphria
