(Bloomberg) -- Aphria Inc. is on track to produce 255,000 kilograms of cannabis a year, the company said in its last earnings report before Canada legalizes recreational use of the drug next week.
Revenue was C$13.3 million ($10.2 million) in the fiscal first quarter ended Aug. 31 compared with C$6.1 million in the same period the prior year due to an increase in wholesale orders, the company said Friday. Leamington, Ontario-based Aphria reported an adjusted loss before interest, taxes, depreciation and amortization of C$4 million compared with C$2.2 million in the same quarter of 2017.
“While we experienced a short-term decline in adjusted earnings in the first quarter, we continued to ramp up our production capabilities,” Chief Executive Officer Vic Neufeld said in the statement. “We are well positioned not only for the recreational market in Canada, but also the continued growth and leadership of the medical cannabis market globally.”
Aphria’s annual production capacity is currently 35,000 kilograms but is expected to reach 255,000 kilograms by November once an expansion at its Aphria One facility is completed. The company sold 1,778 kilograms of pot at an all-in cash cost of C$1.83 per gram in the latest quarter, compared with 1,312 kilograms at C$1.60 per gram in the fiscal fourth quarter.
"There will be supply shortages in the early stages of adult use, including from Aphria, as the industry crosses a major inflection point," Neufeld said on the company’s earnings call.
Aphria was little changed at C$19.71 per share at 9:32 a.m. in Toronto after gaining about 21 percent this week after the Globe and Mail reported that tobacco giant Altria Group Inc. was in talks to buy a minority stake in the cannabis producer.
Canada will legalize recreational marijuana use on Oct. 17.
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