Following the Cannabis Sector’s Meteoric Rise to Start the New Year, the Big 4 Canadian LPs Have Each Reported Quarterly Earnings
As a Result, Cannabis Investors Have Had the Opportunity to Access the Up to Date Fundamentals of Each Company and Determine if These Top Canadian Pot Stocks Are Deserving of Their Current Lofty Share Prices
Today’s TCI Cannabis Earnings Roundup will be reviewing and recapping the most recent quarterly financial results and corresponding earnings conference calls of the Big 4 Canadian Licensed Producers (LPs) Aphria (TSX: APHA) (NYSE: APHA) (FRA: 10E), Canopy Growth (TSX: WEED) (NYSE: CGC) (FRA: 11L1), Aurora Cannabis (TSX: ACB) (NYSE: ACB) (FRA: 21P) and Cronos Group (TSX: CRON) (NASDAQ: CRON) (FRA: 7CI).
Without further delay, let’s jump right in starting with arguably the best Canadian cannabis stock, Aphria.
Aphria (TSX: APHA) (NYSE: APHA) (FRA: 10E)
APHA Fiscal Q2 2021 Earnings Highlights
- Reported revenue of $160.5 million, up 10% over the previous quarter and 33% year over year.
- Adjusted EBITDA came in at $12.6 million, marking the company’s seventh consecutive quarter of positive adjusted EBITDA growth.
- Posted a 99% increase in net cannabis revenue compared to the prior year.
- The company’s gross margin fell from 49.7% to 45.9%, mostly due to inventory write-downs.
- International cannabis sales for the quarter were $5.3 million.
- The company continues to be a leader in the Canadian cannabis sector, with a 13% share of the market.
- Established a strong U.S. presence with its acquisition of Atlanta, Georgia-based Sweetwater Brewing Company.
- Completed its first shipments of cannabis to Germany and Israel.
- The company received a permit to import cannabis oil to Malta.
- Signed agreement to enter Poland.
- Aphria finished the quarter with $320 million in pro-forma cash.
- Most notably, struck a deal with Tilray (NASDAQ: TLRY) (FRA: 2HQ) to merge and since closed, the combined company will be the world’s largest cannabis company.
- Read/Listen to Aphria’s Q2 2021 Earnings Call Transcript
- View Aphria’s Q2 2021 Earnings Press Release
Learn more about Aphria: Website | IR Website | Investor Deck | APHA Chart
Canopy Growth (TSX: WEED) (NYSE: CGC) (FRA: 11L1)
WEED Q3 2021 Earnings Highlights
- Reported revenue for the quarter of $152.5 million, up 13 over the last quarter and 23% year over year.
- Posted adjusted EBITDA of -$68.4 million, a 29% improvement over Q3 2020.
- The Canadian recreational market share leader increased its lead quarter over quarter from 15.4% to 15.7%.
- Established a dominant 34% share of the cannabis beverage market.
- Announced the company divested its position in Canopy Rivers (TSX: RIV) (OTC: CNPOF) and increased its ownership stake in TerrAscend (CSE: TER) (OTCQX: TRSSF) and Vert Mirabel.
- The company reported its Martha Stewart CBD products are outselling 94% of its competitors.
- Announced that Biosteel is using Constellation Brands partners for national distribution
- The company’s SG&A declined 15% compared to last year’s Q3.
- Posted a net loss of $829.3 million, which over 85% was related to non-cash write-offs and share compensation.
- Announced various cost-cutting initiatives expected to save the company $150-$200 million over the next two years.
- The company is projecting positive EBITDA for the full-year 2022 and expects to be cash-flow positive in 2024.
- Canopy’s cash position at the end of the quarter was $1.59 billion.
- Read/Listen to Canopy’s Q3 2021 Earnings Call Transcript
- View Canopy’s Q3 2021 Earnings Press Release
Learn more about Canopy Growth: Website | IR Website | Investor Deck | WEED Chart
Aurora Cannabis (TSX: ACB) (NYSE: ACB) (FRA: 21P)
ACB Q2 2021 Earnings Highlights
- Announced quarterly revenue of $67.7 million, down -0.2% quarter over quarter and up 22.7% over the previous year’s second. quarter.
- Reported an increase in international medical cannabis revenue of 84% over the previous quarter and 562% year over year.
- Recorded adjusted EBITDA of -$168.8 million.
- Aurora’s adjusted EBITDA loss, excluding $12.1 million in provisions and termination costs represents an improvement of $53.1 million compared to the previous year.
- The company’s current loss, which was triggered by several decisions, is expected to boost its long-term profitability.
- At the end of the quarter, the company had the number one market share in Canadian medical cannabis.
- Aurora’s reported a year-over-year decreased in the company’s cash burn and SG&A of 74% and 53%, respectively.
- The company entered into a national distribution agreement with Great North Distributors.
- Completed its first shipment to Cantek Holdings in Israel.
- The company declared it doesn’t intend to wait for U.S. federal legalization to enter the American market.
- As of the end of Q2 2021, Aurora Cannabis had $565 million in cash.
- Read/Listen to Aurora’s Q2 2021 Earnings Call Transcript
- View Aurora’s Q2 2021 Earnings Press Release
Learn more about Aurora: Website | IR Website | Investor Deck | ACB Chart
Cronos Group (TSX: CRON) (NASDAQ: CRON) (FRA: 7CI)
CRON Q4 &FY 2020 Earnings Highlights
- Reported quarterly revenue of $17 million, up 14% over the previous quarter and 133% year over year.
- Revenue for the full-year 2020 increased by 97% coming in at $46.7 million.
- Announced the company’s international (excluding U.S.) revenues grew 193% year over year to $13.5 million.
- Recorded adjusted EBITDA of -$53.1 million.
- Adjusted EBITDA loss for the full-year 2020 was $147.3 million, an increase of $48.9 million from 2019, with the company attributing the increase in losses year-over-year to an increase in gross loss, increased general and administrative expenses, higher sales and marketing costs related to brand development and R&D spending.
- Posted a gross loss of $14.9 million in Q4.
- Cronos’ Q4 gross loss decreased by $5.2 million from Q4 2019, with the company attribiting the decrease in losses to a decline in inventory write-downs and increased gross profit in the U.S. segment.
- Signed an Israel distribution deal for Peace Naturals flower and oils with access to up to 250 stores.
- Completed its first commercial shipment of CBD extract from Colombia to the U.S.
- The company completed construction of its Canadian production facility, with operations expected to begin in the first half 2021.
- Cronos’s Spinach flower brand won Best Hybrid Dry Flower from Kind Magazine.
- The company announced that its Ginko R&D partnership is focused on increasing scale and optimizing commercialization of under-supplied cannabinoids such as CBG.
- Finished the quarter with a cash position of $1.3 billion.
- Read/Listen to Cronos’ Q4 & FY 2020 Earnings Call Transcript
- View Cronos’ Q4 & FY 2020 Earnings Press Release
Learn more about Cronos Group: Website | IR Website | Investor Deck | CRON Chart
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The Cannabis Investor does not hold a position in any of the stocks mentioned in this article.
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