Aphria quarterly revenue misses estimates as COVID-19 hits drug distribution

(Reuters) – Canadian pot producer Aphria Inc APHA.TOAPHA.O on Thursday missed estimates for quarterly revenue as reduced in-person visits to physicians and pharmacies due to COVID-19 curbs in Germany hit its distribution business, which accounts for half of total sales.

Aphria’s first-quarter distribution revenue fell to C$82.2 million ($62.20 million) from C$99.1 million in the previous quarter and C$95.3 million from a year earlier.

The company posted net revenue of C$145.7 million in the quarter, missing Street estimates of C$159.7 million, according to IBES data from Refinitiv.

U.S.-listed shares of the company fell 10% in premarket trading, dragging other cannabis stocks with them.

The spread of the COVID-19 pandemic led to countries and states closing borders, disrupting supply chains with companies holding off new product launches and some even shutting stores.

Ontario-based Aphria also posted a net loss of C$5.1 million, or 2 Canadian cents per share, in the three months ended Aug. 31, compared with a net income of C$16.4 million or 7 Canadian cents per share, a year earlier.

The loss, however, was smaller than analysts’ average estimate of a loss of 4 Canadian cents.

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