Aphria’s stock tumbles after revenue rises less than expected, as excise taxes took a bigger bite

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The U.S.-listed shares of Aprhia Inc. tumbled 8.2% in premarket trading Thursday, after the Canada-based cannabis company reported a narrower-than-expected fiscal first-quarter loss but revenue that rose less than forecast despite. The company swung to a net loss for the quarter to Aug. 31 of C$2.62 million ($1.98 million), or 2 cents a share, from net income of C$14.8 million, or 7 cents a share, in the year-ago period. The FactSet consensus was for a net loss of 3 cents a share. Revenue grew 15.5% to C$145.7 million ($110.2 million), but missed the FactSet consensus of C$159.6 million. Cannabis revenue more than doubled (up 134.4%) to C$82.2 million, but distribution revenue fell 13.8% to $82.2 million and excise taxes more than tripled to $19.7 million from $4.3 million. The average retail selling price of medical cannabis rose to C$7.38 ($5.58) per gram from C$6.63 in the previous quarter, while the average selling price of adult-use cannabis fell to C$4.15 per gram from C$5.23. The stock has run up 16.0% over the past three months through Wednesday, while the Cannabis ETF has lost 7.5% and the S&P 500 has gained 8.1%.
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