Aphria Inc (NASDAQ:APHA) posted a growth of just 6.4% to CAD 153.6 million in Q3 2021. However, its revenues dropped by 4.3% QoQ because of a drop in distribution and cannabis revenues in Q3 2021.
The company is taking measures to bring down inventory levels in the quarter because of an expected drop in demand. It braced for product returns of CAD 5 million because of provincial government measures. However, Aphria found alternative distribution channels to mitigate the loss caused by returns to CAD 4.1 million.
Chairman of Aphria, Irwin D. Simon said its teams showed exemplary performance by managing the expenses meticulously despite the impact of ongoing coronavirus.
Well-positioned to report exemplary growth
The company experienced longer lockdown in regions where it operates, particularly in Canada. The pandemic restrictions hit its cannabis business more compared to the expectations. However, the company is well-positioned with its market share and leading brands to post robust growth in its topline when the market improves.
Aphria reported solid growth in the first full quarter from the improved contribution of SweetWater despite reduced sales.
Key achievements in Q3 2021
Aphria and Tilray Inc (NASDAQ:TLRY) entered a deal on December 16, 2020, to create a larger cannabis company. It is an all-stock deal. According to an interview with the leaders of Tilray and Aphria on Tuesday, the combined entity will have an equity value of CAD 4.8 billion.
Following the merger, the shareholders of Aphria will hold 62% of the stock in Tilray. Irwin said he realized the need for Aphria to expand its operations outside Canada and integrate with Tilray.
Aphria rose to the 2nd rank in Quebec in terms of sales by improving market share. It also maintained the 1st rank as a licensed producer in Alberta and Ontario.
Adds Solei Plus+ high potency oils
Aphria added Solei Plus+ high potency oils and Good Supply’s THC 30:0 to the adult-use brand portfolio.
The customers will enjoy a tasteless and odorless experience using Solei and Good Supply’s new high potency oils.
Irwin said the company recognized the importance of providing a flexible option to the customers in consumption. Hence, its team works on priority to expand its product line to include high potency oils.
 Reports Revenues Of CAD 153.6 Million In Q3 2021: Signs A Pact To Merge With Tilray Inc (NASDAQ:TLRY)){kind=link}