By Dhirendra Tripathi
Investing.com – Aphria (TSX:APHA) shares fell more than 13% after disappointing earnings outweighed any euphoria generated by its decision to combine with Tilray (NASDAQ:TLRY) to create the world's largest global cannabis company.
Compared with the same quarter a year ago, lockdowns took a toll on its revenue, margins and bottom line.
Net revenue for the three months ended February 28 was C$153.6 million ($122.5 million), an increase of 6.4% from C$144.4 million in the same period last year. But that fell short of the expected C$162.4 million. The company suffered what it called a “transitory reduction in demand during the quarter.”
Its adjusted cannabis gross margin fell to 39.2% from 42.7% from the February quarter a year ago. The company reported a net loss of C$360,996, or C$1.14, against expectations for a loss of around 4 cents.
The average retail selling price of medical cannabis, before excise tax, decreased to C$6.69 per gram in the quarter, compared to C$6.96 per gram in the prior quarter.
The company said the decline was a result of specific pricing programs offered to assist patients in need who have been negatively affected by the pandemic, along with other promotional programs.
The company’s proposed merger with Tilray will be put to vote on April 16.