The new year is off to a great start for the cannabis industry, and one of the big winners is Aphria (NASDAQ 🙂 (TSX :).
Last week, the Canada-based marijuana grower put in $ 160.5 million in net sales, a 33% jump from the same period last year when it revealed its latest quarterly results.
One reason for the improved performance was that the company pointed to an increase in recreational sales – a trend many of the major companies in the industry saw during the pandemic. Gross recreational cannabis revenues reached $ 72.1 million, a new business record, representing a 149% year-over-year increase.
The company also reported a resurgence in its medical marijuana division.
The news increased the share by an impressive 18%. The value of the company's stock continued to rise for the rest of the week, closing out last Friday at $ 12.42 and yesterday at C $ 16.42 on the Toronto Stock Exchange. Since early 2021, the company's stock is up nearly 80%. In the past year, the shares have gained more than 130%.
Although Aphria reported an increase in sales for the seventh straight quarter, the last three-month period, ending November 30, also included a $ 120.6 million loss, a sharp increase over the loss of $ 5.1 million in the previous quarter. The increase in losses, according to the company, was due to merger and acquisition transaction costs and what the & # 39; increased stock-based compensation & # 39; called.
Last November, Aphria acquired SweetWater Brewing in a cash-and-stock deal to position itself in the US cannabis beverage market.
That move was followed in December when Aphria announced the $ 5 billion deal to acquire another Canadian cannabis producer, Tilray (NASDAQ :). That deal will be finalized later this year.
The purchase of SweetWater gave the company immediate access to an extensive distribution network, which includes 29,000 US retailers, more than 10,000 bars and restaurants, and a major airline, Delta Air. Lines (NYSE :).
And the market for cannabis-infused beverages, especially in the US, is heating up, spurred by the prospect of a more favorable regulatory environment as the new Biden administration takes office in Washington.
]
Miller Time Gives Way to CBD
Another sign of the expansion of the US market for adult cannabis-infused beverages came late last week when Molson Coors ( NYSE 🙂 announced its entry. The multinational beer maker, known for its Coors and Miller High Life brands, has launched an alcohol-free sparkling water infused with cannabidiol.
The company will only sell the canned beverages on a trial basis in Colorado. Made by Truss CBD USA, a joint venture between Molson Coors and Canadian cannabis grower Hexo Corp (NYSE 🙂 (TSX :), the drinks will be marketed under the Veryvell brand. Unlike the Veryvell line marketed in Canada, the US version does not contain THC, the psychoactive ingredient found in cannabis.
Truss Beverages was founded in 2018.
