Aphria Inc. APHA

Aphria, which is headquartered in Ontario, produces and sells medicinal and recreational cannabis. The company operates through retail and wholesale channels in Canada and internationally. Aphria is a main distributor of medical cannabis to Germany and has operations in over 10 countries outside of Canada. However, it does not have exposure to the U.S. CBD or THC markets due to the constraints of federal prohibition. It has some U.S. exposure through the acquisition of SweetWater, a craft brewer

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Aphria Inc. > Would be nice to know how...

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Comment by ArimaForecaston Oct 11, 2020 7:31pm

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Post# 31703196

RE:Would be nice to know how...

Anything that makes money is welcome. With many assumptions, you can criticize Apha easily. Removing CC Pharma revenue is like removing everything from Amazon except bookstore. Remember at the beginning, the company began service as an online bookstore

Ventura2020 wrote:
cc pharma is doing? They could have a huge impact on Q1. Search has come up empty.

Ointment, meet fly

You might have noticed that there's a big gap between the CA$128.6 million in total net revenue and the CA$28.6 million in net cannabis revenue. Most of that CA$100 million difference -- CA$99.2 million of it -- came from distribution revenue, primarily generated by CC Pharma. Aphria completed its acquisition of the German pharmaceutical distributor in January 2019.

The reality is that without CC Pharma, Aphria's Q4 revenue wouldn't have looked nearly as impressive. And the company possibly wouldn't have posted a profit, either.

Aphria stated that its adjusted distribution gross profit for the fourth quarter was CA$12.3 million. Nearly all of this amount came from CC Pharma. If this amount is backed out and we adjust for the impact of the net fair value adjustment for biological assets, Aphria would quite possibly be in the red again.

This isn't a knock against Aphria's Q4 results. They truly were impressive and certainly better than probably anyone expected. However, it's indisputable that Aphria's strength in the quarter was largely driven by its acquisition of CC Pharma and not just by improvement in its core cannabis business.

V