Aphria Shares Slump as Marijuana Provider Swings to Loss

Aphria shares dropped Wednesday, after the Ontario marijuana company swung to a fiscal-fourth-quarter loss amid the coronavirus pandemic.
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Aphria  (APHA) - Get Report shares dropped Wednesday, after the Canadian marijuana company swung to a fiscal-fourth-quarter loss amid the coronavirus pandemic.

The Leamington, Ontario, company's shares recently traded at $5.03, down 16%. The stock has dipped 4% year to date; it had reached a 10-month high Tuesday. The ETFMG Alternative Harvest ETF MJ is little changed year to date.

For the quarter ended May 31, Aphria reported a loss of C$98.8 million (US$74 million), or 39 Canadian cents a share, compared with profit of C$15.8 million, or 5 cents a share, in the year-earlier quarter.

The FactSet analyst consensus called for a loss of 3 cents a share in the latest quarter.

Aphria registered a C$64 million impairment, thanks to the pandemic decreases in the value of its long-term investments.

Revenue climbed 18% to C$152.2 million in the latest quarter from C$128.6 million a year earlier. Analysts predicted revenue of C$149. million in the latest quarter.

Aphria reported that the average selling price of medical cannabis at retail, before excise tax, rose 3.4% to $6.63 a gram in the quarter from $6.41 in the third quarter.

The average selling price of adult-use cannabis, before excise tax, fell 4.4% to $5.23 a gram from $5.47, "primarily as a result of a change in sales mix and price reductions in key markets to solidify market share," Aphria said.

Last month, Aphria moved its stock listing to the Nasdaq from the NYSE, apparently to save money and because of Nasdaq’s focus on socially responsible investing.

The move reflected Aphria's "commitment to find cost-effective ways of operating so we can continue to deliver long-term value to shareholders," Chief Executive Irwin Simon said in a statement.

"Additionally, as a purpose-driven company, we believe Nasdaq will be a good fit for Aphria, particularly given our focus on, and the progress we have made, integrating [environmental, social and corporate governance] practices across our business."