(Bloomberg) -- Aphria Inc. shares fell 8% in pre-market trading after the Canadian cannabis producer missed the lowest revenue estimate and cut its guidance for the current fiscal year.
The company reported second-quarter net revenue of C$121 million, below the consensus estimate of C$130 million. Its adjusted Ebitda was C$1.9 million, the third consecutive quarter of positive results.
Aphria cut its full-year revenue forecast to a range of C$575 million to C$625 million, down from its prior outlook of C$650 million to C$700 million. It now expects to report full-year adjusted Ebitda of C$35 million to C$42 million, down from C$88 million to C$95 million previously.
The pot producer cited a slower-than-expected rollout of retail stores in its home province of Ontario, the temporary banning of vape products in Alberta, the higher cost of sourcing third-party cannabis while it waited to receive a license for its Aphria Diamond greenhouse and a slowdown at its German operations due to changes in the government’s medical reimbursement model.
Chief Executive Officer Irwin Simon said he expects sales and profitability to accelerate in the second half of fiscal 2020. Speaking on the company’s earnings call, he also said Aphria is considering non-core asset sales “to further streamline our business and reduce capex over time.”
Cannabis stocks were broadly lower Tuesday morning after rallying on Monday. Cronos Group Inc. fell 3.2%, Canopy Growth Corp. lost 2.4% and Aurora Cannabis Inc. slid 2.3%.
(Updates with CEO comment in fifth paragraph)
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