Benzinga | Jan 14, 2021 12:18PM EST

Aphria Posts Higher Revenue, Plans To Close Tilray Deal In Q2

Aphria Inc. (TSX:APHA) (NASDAQ:APHA) posted net cannabis revenue of CA$67.9 million for the second quarter of 2021 -- 99% higher than in the prior-year quarter.

Overall, net revenue hovered CA$160.5 million ($126.6 million). That's up by 33% from the same period in fiscal 2020.

Gross revenue for adult-use cannabis was $72.1 million -- a 150% year-over-year increase.

The Ontario-based company also had a net loss of CA$120.6 million, or a loss of CA$0.42 per share, compared to a net loss of CA$7.9 million, or a loss of CA$0.03 per share in the same quarter of the prior year.

This is Aphria's seventh quarter in a row of growth in terms of gross revenue for recreational cannabis, as well as achieving positive adjusted EBITDA both overall and from the cannabis business.

Its positive adjusted EBITDA amounted to CA$12.6 million, up by 26% from the previous quarter, while its adjusted EBITDA from cannabis operations reached CA$12.9 million, which is by 24% higher than one quarter earlier.

The company noted a powerful balance sheet and liquidity, having CA$320 million of proforma cash, which it plans to use to support growth in Canada and abroad.

Notable Milestones

Aphria highlighted some important international-related milestones achieved in the previous period:

* Finalizing its first EU-GMP shipment of dried cannabis and cannabis oil to Germany;

* Obtaining import permit for first EU-GMP shipment of cannabis oil for sale in Malta;

* Finalizing its first shipment of medical cannabis to Canndoc for distribution in Israel;

* Executing supply agreement with ODI Pharma AB, by which reaching Poland.

Aphria also completed a strategic purchase of SW Brewing Company, and closed $120 million in financing with BMO.

"We are pleased with our second quarter results which reflect the strength of our diversified global cannabis and consumer packaged goods businesses," CEO and chair Irwin Simon stated.

Simon also expressed excitement about the merger with Tilray Inc. (NASDAQ:TLRY), which is on-track to close in the second quarter of 2021.

"Looking forward, we are planning to execute on the significant strategic and financial opportunities provided by the addition of SweetWater and, upon the closing of the Tilray business combination, including our over $100 million anticipated pre-tax synergies, to generate significant value for our stakeholders," Simon said.