Cannabis producer Aphria posts bigger-than-expected loss

Canadian pot producer Aphria APHA.TO, <APHA.O> on Wednesday posted a bigger-than-expected quarterly loss and took impairment charges on some foreign assets, as coronavirus-related lockdowns disrupted tourism and supply chains.

U.S.-listed shares of the company fell about 4% in premarket trading.

Lack of profitability has been a major concern for cannabis investors as companies have largely failed to deliver on initial promises of boundless growth in the nearly two years since Canada legalized recreational marijuana.

However, net revenue rose more than 18% to C$152.2 million ($113.86 million) as the COVID-19 pandemic led customers to stockpile on cannabis ahead of the lockdowns.

The outbreak has also caused supply issues and delays in new product launches as companies scale back their workforce to essential employees only, while the absence of tourism-related dollars has also been a big worry for cannabis companies.

Aphria took impairment charges of C$64 million in the quarter on the value of its assets in Jamaica, Lesotho, Colombia and Argentina.

The company reported a quarterly net loss of C$98.8 million, or 39 Canadian cents per share, in the three months ended May 31, compared to a profit of C$15.8 million, or 5 Canadian cents per share, a year ago. [Read more at Nasdaq]