Generating profit as a cannabis firm is a difficult job owing to a number of reasons. However, Aphria Inc. has moved past all those hurdles, becoming the first pot company to report a net profit, on Thursday. The piece of news sent the shares of the Leamington, Ontario-based company up by 32% in the post-market trading.
The company reportedly earned C$15.8 million (roughly $12 million) on revenue of C$129 million in the quarter that ended May 31. The figure was up by a whopping 75% from the prior quarter.
Given below are a few key insights of this landmark of sorts:
- Revenue from adult-use marijuana sales was C$18.5 million, up 158% from the prior quarter, on 5,574 kilograms of cannabis sold.
- With cash cost/gram of dried cannabis dropping to C$1.35 from C$1.48, it cost Aphria Inc. less to produce pot in the said quarter.
- Interim CEO Irwin Simon said that the firm expects to generate net revenue of C$650-C$700 million in fiscal 2020.
Simon added that Aphria is building strategic partnerships and alliances to enter the USA CBD market, where it still doesn’t have a presence. “We’re always on the lookout for opportunities in the United States, but it needs to be the right one – one that will create real and long-term value for our stakeholders.”
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