Its sales were 12 million Canadian dollars, up from 5.7 million Canadian dollars the previous year. Its gross margin contracted to 78.7% year-over-year, from 85.7%. It reported a net loss of 4.9 million Canadian dollars compared to a net loss of 2.5 million Canadian dollars a year ago.
PI Financial upgrades target
Investor sentiment toward the cannabis industry continues to be weak. During the day on August 1, Aphria sank 8.2%, closing at 10.60 Canadian dollars, while its peers Canopy Growth (WEED) and Aurora Cannabis (ACB) (ACBFF) fell 2.2% and 2.6%, respectively. Tilray (TLRY), which debuted on July 19, closed 2.2% higher that day. Year-to-date, Aphria has fallen 43%, while the benchmark index Horizons Marijuana Life Sciences ETF (HMMJ) has fallen 23.7%.
Despite Aphria reporting losses, PI Financial upgraded its price target for the stock to 28 Canadian dollars from 26 Canadian dollars. That target would give an upside of almost 164%. The stock has a “buy” rating.
During the quarter, Aphria’s cash cost per gram fell slightly to 0.95 Canadian dollars per gram from 0.96 Canadian dollars the previous quarter. However, its all-in cost of goods sold per gram increased to 1.60 Canadian dollars per gram sequentially, from 1.56 Canadian dollars. The company had a total production capacity of 35,000 kilograms as of the end of the quarter and is expected to increase to 255,000 kilograms by January 2019.
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