Aphria (TSX: APHA) (NYSE: APHA) shareholders are celebrating after the company announced the release of exceptional Q4 earnings on Thursday evening. As of now, it’s safe to say Aphria has turned over a new leaf and officially closed the book on the Neufeld Era.
Aphria announced record numbers across the board backed the company’s robust recreational sales. The company reported profitability in Q4 in addition to colossal net revenue of $128.6 million, up 75% quarter over quarter and 969% year over year.
Aphria Q4 Operational Highlights:
- Q4 net revenue increased 75% from the previous quarter to $128.6 million.
- Increase of 969% over last year’s quarter.
- Q4 adult-use sales came in at $18.5 million, up 158% from the previous quarter.
- Q4 net income was $15.8 million with adjusted EBITDA coming in at $0.2 million.
- Q4 adjusted EBITDA from cannabis operations was $1.9 million.
- Aphria finished Q4 with good liquidity and a strong balance sheet.
- Aphria had $571 million in cash, cash equivalents and liquid marketable securities on the books.
- This puts the company in a great position to fund its Canadian and International growth initiatives.
- Aphria closed on USD $335 million in 5.25% convertible senior notes.
- The company settled the Green Growth Brands takeover bid which brought in an additional $50 million in cash with another $39 million expected in November.
- Aphria planted over 200,000 cannabis plants at its new Aphria One cultivation expansion.
- The company is on-track for 255,000 kgs of annual production capacity once all its facilities are fully licensed.
- Aphria won the maximum of 5 lots in the German cannabis tender.
- Aphria is the only licensed producer approved by the German Federal Institute for Drugs and Medical Devices to grow all three strains of medical cannabis in Germany.
- The company also introduced its CBD-based nutraceutical line into the German market.
- Aphria also added several key members to its executive team further strengthen its seasoned management.
Key Company Milestones:
- Aphria landed the Pax Labs deal and became a Pax Era brand partner.
- The company’s Jamaican subsidiary Marigold Projects Jamaica Limited secured its retail herb house license authorizing the opening of its first cannabis store.
- Located at Peter Tosh Square, Unit #51, Pulse Center, 38a Trafalgar Road.
“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,” stated Aphria Interm CEO Irwin D. Simon.
“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.”
Aphria 2020 Outlook:
- Aphria anticipates net revenue for fiscal 2020 to come in at roughly $650 million to $700 million.
- The company expects a little more than half of this net revenue to be made up of distribution revenue.
- Aphria expects fiscal 2020 EBITDA of approximately $88 million to $95 million.
Q4 Earnings Call & Webcast Replay Details:
- To access a recording for the earnings call dial (855) 859-2056 and enter the passcode 5081017.
- The earnings call webcast is available for 30 days and can be accessed here.
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