Canadian cannabis company Aphria Inc. (NYSE: APHA) saw its stock jump over 40% in trading on Friday after the company delivered profits that pleased traders and gave a rosy outlook for 2020. The company reported net income of C$15.8 million or $11.9 million versus last year’s loss of C$5 million for the same time period. Sales jumped to C$128 million over the previous year’s C$12 million.
The move helped polish what was starting to be another dismal quarter for cannabis stocks. Most cannabis indices got a sympathetic lift on the rise in Aphria stock on Friday. The second quarter saw most cannabis indices down by 15-20%. The third quarter also started with continued selling, but this may have put the brakes on some sell tickets.
“It’s a new day at Aphria. Our team’s solid execution across key areas of our business resulted in strong adult-use revenue growth and a profitable fourth quarter,” stated CEO Irwin D. Simon. “Over the last six months, our organization identified immediate priorities to help generate substantial progress near-term and long-term.”
The company stated that the higher revenue in the quarter was driven by $99.2 million of distribution revenue from CC Pharma and other distribution companies and $33.5 million of revenue from cannabis produced. Net revenue includes over 3,228-kilogram equivalents sold for the adult-use market and 1,417-kilogram equivalents for medical cannabis sales.
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