Licensed cannabis producer Aphria posts second consecutive quarterly profit
Shares of Aphria were up more than 13 percent in the first two hours of trading this morning. This came after the Leamington, Ontario-based cannabis company released surprisingly good financial results.
Aphria exceeded analysts' expectations by posting net income of $16.4 million in the first quarter and adjusted earnings before income tax, depreciation, and amortization of $1 million.
It's the second consecutive quarterly profit.
Net revenue rose 849 percent on the quarter to $126.1 million.
"Our success was also driven by our international business and the strength and growth of our brands, particularly Broken Coast, despite a small fire at our British Columbia facility at the end of the quarter," Aphria chairman and interim CEO Irwin D. Simon said in a news release. "This solid start to the year keeps us on track to achieve our fiscal year 2020 financial outlook."
As of this writing, Aphria shares are trading at $7.04. That's still off sharply from the 52-week high of $20.96.
Last last year, Aphria shares nosedived after short-sellers pounced on the company's deal to buy licences in Latin America owned by LATAM Holdings, claiming it paid far too high a price.
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