Aphria Inc (NASDAQ: APHA) stock dropped 14% on Monday after the company announced disappointing fiscal Q3 2021 results. The stock is among the top-performing marijuana stocks, but its exceptional performance seems to be cooling off. Net revenue was CA$153.6 million, a 6.4% YoY improvement, but it was short of analysts’ estimates of $166.2 million.
The cannabis company reported a net loss of CA$361 million or $1.14 per share compared to a net income of CA$5.7 million or $0.02 per share. The company generates revenue from CC Pharma business in German and the sale of medical and recreational marijuana. Distribution revenue was down 5%, and net revenue dropped 24% from the previous quarter. This was due to the lockdowns in Canada and Germany. Similarly, lower selling prices hurt the company as the average selling price per gram dropped to CA$6.69 in the third quarter.
Going forward, as more people get vaccinated, businesses will open to boost sales. The company is also looking forwards to its merger with Tilray (NASDAQ: TLRY). Therefore, the stock is worth keeping tabs on in the coming months.
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