Analyst Note| Kristoffer Inton |
Aphria’s fiscal third-quarter results showed a marked decline stemming from lockdowns to control the COVID-19 pandemic in Canada. Unlike previous lockdowns, most dispensaries were closed to in-person sales and offered only online ordering for pickup or delivery. As a result, net cannabis revenue declined 8% year over year and 24% sequentially to $52 million. Adjusted EBITDA from cannabis declined 39% from the second quarter to $8 million. Aphria’s cost-cutting efforts helped protect some profitability from the top-line decline.