Aphria (APHA) Stock Gains After Setting Record

Aphria APHA Stock News

Aphria Inc (NYSE: APHA) is rocketing in the market today after announcing its financial results. The fact that the company set the record as the first publicly traded Canadian cannabis producer to turn a profit is sending the stock up on gains well over 25%. Here’s what’s going on:

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APHA Stock Gains On Profits

In a press release issued late yesterday, Aphria announced its financial results for the fourth quarter and fiscal year ended May 31, 2019. Here’s what we saw from the report:

Revenue proved to be incredibly strong. The company generated CA$129 million in net revenue during the quarter, proving to be a more than tenfold year over year gain. Analysts were expecting for the comapny to generate revenue to come in just uner CA$98 million.

Much of the revenue came from large distributors. In fact, distributors like CC Pharma and its peers delivered CA$99 million in orders for the quarter.

Organic growth proved to be strong during the quarter. Recreational cannabis sales jumped more than 150%, coming in at CA$19 million.

Importantly, APHA is now the first major Canadian cannabis company that has reported a net profit. The company said that it earned C$15.8 million or US$12 million. That works out to about CA$0.05 per share.

In a statement, Irwin D. Simon, CEO at APHA, had the following to offer:

It’s a new day at Aphria. Our team’s solid execution across key areas of our business resulted in strong adult-use revenue growth and a profitable fourth quarter. Over the last six months, our organization identified immediate priorities to help generate substantial progress near-term and long-term.

We built upon existing business fundamentals and capabilities, streamlined processes, strengthened governance, and focused on building brand awareness. Together, we have nurtured an entrepreneurial culture of accountability through data-driven decision-making for value creation in the global medical and adult-use cannabis industry. Today’s Aphria has a stronger foundation for long-term growth and success.

This News Is Significant

The news released by Aphria today proved to be overwhelmingly positive. Let’s face it, there are larger Canadian cannabis companies out there. However, Aphria seems to be making the right moves at the right time. With compelling year over year revenue growth and the fact that the company is the first in big Canadian cannabis to produce a profit, it’s hard not to pay attention to this stock!

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