Aphria Inc., a solar-power cannabis distributor, recorded its fifth consecutive quarter of profitability.Each quarter reported income before tax has been $3,720; $102,164; $895,269; $945,678; and $4,950,250 respectively.
For the most part, the increase of the pre-tax profitability is a product of the rise in fair value of long-term investment portfolios.Aphria kept reporting strong EBITDA levels, and this is its third quarter in a row with EBITDA over $1 million.
This exemplifies Aphria’s concentration on their low-cost producer status as well as cutting-edge patient care service.The company’s revenue for the past three months was $5,118,516, which shows a 2 percent decrease from the previous quarter.
This decrease parallels predictions and, thus, substantiates the logic that the cap of $8.50 per gram for medical cannabis for veterans would also cap profitability to a certain extent.Revenue per gram for non-veterans offset the impact of the price cap on revenue.This was caused by the sale of less wholesale product as well as further development of cannabis oils.
Abnormal, wintry weather caused the increase of costs for dried cannabis per gram from $1.79 in the previous quarter to $2.23 now.The $0.44 increase was also inclusive of costs for the company’s “Part II expansion,” according to an Aphria press release detailing recent profits.
The unusual conditions that resulted from the wintry weather, unseasonable as it was, included a diminished amount of sunlight.
Leamington received only four-fifths of the average amount of sunlight it was supposed to receive during that quarter.This led to lower yields from individual plants, necessitating the $0.20 increase for the company’s “all-in” costs for dried cannabis by the gram.It also raised the electrical and heating expenses, adding another $0.14 to the “all-in” costs.
CHECK COPYRIGHT; There is no reference URL.Date: 06.01.17