CA (ON): Aphria reports positive Q3 earnings

Aphria will report positive earnings, with and without IFRS mandated biological asset adjustments, for the third quarter. Additionally, Aphria achieved its cash break-even threshold for the first nine months of the fiscal year, a quarter sooner than originally announced. Revenue increased 32.2% from the prior quarter, growing from $2.0 million to $2.68 million, while year-to-date revenues exceed $5.6 million.

Throughout the quarter, patient registrations continued to grow with over 4,000 patients registered as of February 29th, 2016 (compared to 3,400 as of November 30th, 2015).

Continuing to leverage Aphria's low cost producer status, the company's adjusted gross margin increased by 8% over the past quarter to 77%. This continued improvement was fueled by attention to operating cost controls, optimized strain selection and refinements to growing techniques. Given their recent Health Canada expansion approval, which doubled their growing space, further cost reductions are anticipated with full crop rotation.

"Having doubled our capacity, added oil extraction capabilities and operating state-of-the-art in-house laboratories, we are strategically positioned to capitalize on the growth of the medical cannabis market, as well as the recreational marijuana market (once legalized)," said Vic Neufeld, CEO. "Together with new enhanced strains yielding our highest levels of THC and CBD ever, and an investment in agricultural genetics research, Aphria is demonstrating best-in-class leadership."

For more information:
Aphria Inc.
Vic Neufeld
President & CEO
1-844-427-4742
aphria.com