Aphria reports loss, cuts revenue guidance for 2020

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Aphria
reported
a
net
loss
of
8
million
Canadian
dollars
($6.2
million)
for

the
second
quarter

ending
Nov.
30,
2019,
and
the
Canadian
cannabis
producer
lowered
its
fiscal
2020
revenue
outlook.

Aphria’s
net
revenue
for
the
three
month
period
was
CA$120.6
million,
down
from
the
previous
quarter’s
CA$126
million
and
lower
than
analyst
expectations.

Net
income
also
took
a
turn
lower.

Aphria’s
second
quarter
net
income
of
minus-CA$8
million
is
a
substantial
downturn
from
the
first
quarter’s
net
income
gain
of
CA$16.4
million.

The
quarter’s
adjusted
EBITDA increased
slightly
to
CA$1.9
million,
about
in
line
with
expectations.

Canaccord
Genuity
analyst
Matt
Bottomley
had
expected
Aphria
to
report
net
revenue
of
almost
CA$130
million
and
adjusted
EBITDA
of
CA$2.2
million.

Citing
regulatory
hurdles
in
Ontario,
Alberta,
Germany
and
by
the
Canadian
federal
government,
Aphria
lowered
its
guidance
on
net
revenue
to
CA$575
million-CA$625
million
for
fiscal
year
2020,
a
slight
decrease
from
the
previously
disclosed
expected
net
revenue
of
CA$650
million-CA$700
million.

The
company
also
lowered
its
guidance
for
adjusted
EBITDA to
CA$35
million-C$42
million
for
the
year,
down
from
the
previous
CA$88
million-CA$95
million

For
the
lower
guidance
the
company
cited:

  • A
    slower
    than
    expected
    retail
    location

    rollout
    in
    Ontario
    .
  • The
    temporary
    ban
    on
    vape
    products

    in
    Albert
    a.
  • The
    amount
    of
    time
    it
    took
    Health
    Canada
    to
    fully
    license
    its

    Aphria
    Diamond

    facility.
  • Slower
    CC
    Pharma
    growth
    as
    a
    result
    of
    recent
    changes
    in
    the
    German
    government’s
    medical
    reimbursement
    model.

The
company
also
announced
that
interim
CEO
Irwin
Simon
will
continue
as
permanent
CEO,
effective
today.

Simon
had
been
interim
CEO
since
the
previous
CEO
was
stepped
down
in
February
2019
after
a
period
of
significant
volatility
for
the
company.

Aphria
also
said Jodi
Butts

has
been
elected
to
the
board.

Aphria
ended
the
second
quarter
with
CA$498
million
of
cash
and
cash
equivalents.

Aphria
trades
as
APHA
on
both
the New
York
Stock
Exchange
 and Toronto
Stock
Exchange
.

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