Aphria Inc. (NYSE:APHA) displayed a change of 5.17% in final minutes of Friday’s trading session after which it closed the day’ session at $6.92. The general volume in the last trading session was 16,422,320 shares. During the 52-week trading session, the minimum price at which share price traded was registered at $6.39 and reached the max level of $19.11.
Aphria Inc. (NYSE: APHA) stated its results, for the second quarter ended November 30, 2018 , and the decision by its Chief Executive Officer, Vic Neufeld , and Co-founder Cole Cacciavillani , to transition out of their executive roles over the coming months. Mr. Neufeld and Mr. Cacciavillani will remain in their current roles until such time. All amounts are expressed in thousands of Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts.
Key Financial Highlights
Net revenue for the three months ended November 30, 2018 was $21.70M , compared to $13.30M in the prior quarter and $8.50M in the same period last year. Higher revenue in the quarter was driven by a 92.00 percent increase in kilogram equivalents of cannabis sold and an additional $1.60M of non-cannabis international sales. Initial sales in the newly legalized Canadian adult-use market accounted for over 1,900 kilogram equivalents sold. Medical cannabis sales declined marginally from 1,466.2 kilogram equivalents sold in the previous period to 1,443.6 kilogram equivalents sold in the second quarter. Cannabis oil sales, as a percentage of volume, decreased to 19.00 percent of overall sales from 39.00 percent in the prior quarter, reflecting the higher percent of dry bud sold in the adult-use market.
Partly offsetting the positive revenue impact of higher kilogram equivalents sold, average selling price, inclusive of excise tax, declined to $6.54 per gram in the quarter, compared to $7.12 in the prior quarter. As anticipated, this reflected sales to the adult-use market, which had a lower average selling price of $6.32 , inclusive of excise tax, compared to $7.51 in the medical-use market, also inclusive of excise tax.
Adjusted gross profit for the second quarter was $10.20M , with an adjusted gross margin of 47.00 percent, compared to $8.50M with an adjusted gross margin of 64.00 percent in the prior quarter. Adjusted gross margins declined as expected in the quarter, reflecting lower average selling prices in the adult-use market. In addition, production costs as a percentage of sales temporarily increased and yields decreased as production space was allocated for mother and vegetative plants for the Part IV and Part V expansion of Aphria One.
Selling, general and administrative costs (“SG&A“) in the quarter rose to $27.50M , from $24.10M in the prior quarter and $7.30M in the prior year, primarily due to higher headcount and employee-related costs, following the acquisitions of Nuuvera Inc. and LATAM Holdings, and as a result of investing $2.60M in brand development prior to the implementation of The Cannabis Act. As a percent of net revenue, SG&A declined to 127.00 percent from 181.00 percent in the prior quarter, reflecting improved operating leverage on the Company’s growing revenue base.
Net income for the second quarter of 2019 was $54.80M or $0.22 per share, compared to $21.20M or $0.09 per share in the previous period, and $6.50M or $0.05 per share for the same period last year. The increase in net income relates to gains on our long-term investment portfolio, primarily our divestitures of positions in Hiku Brands and Liberty Health Sciences.
Adjusted EBITDA loss from Canadian cannabis operations (previously referred to as ACMPR operations)1 for the second quarter was $6.10M compared to a loss of $0.80M in the prior quarter. Adjusted EBITDA loss from Aphria International for the second quarter was $3.50M compared to adjusted EBTIDA loss from Aphria International of $3.10M in the prior quarter. The increased adjusted EBITDA loss in the second quarter is primarily attributable to temporary increases in production costs, decreases in yields as previously noted, as well as increases in general and administrative expenses undertaken to support the Company’s planned capacity expansions.
APHA’s Performance breakdown (SMA20, SMA50 & SMA200):
APHA (NYSE:APHA) has seen its SMA20 which is now 1. In looking the SMA 50 we see that the stock has seen a 1 while it has a distance of 1 from the 200 days simple moving average.