Aphria (NASDAQ: APHA), the company to be merged into Tilray (NASDAQ: TLRY), with 62% post-merger ownership, just released its earnings for the quarter ended on Nov 30, 2020.
And the numbers are good – net cannabis revenue doubled yoy; adj. EBITDA margin continues to improve.
The stocks in the cannabis industry are cheering it up. In the past 3 month, those stocks are up more than 100%.
More legalization and Cannabis 2.0 products helped the sales.
More impressively, cannabis companies are growing their revenue while controlling the costs.
In the latest quarter (FY21Q2), Aphria grew net revenue by 33% yoy while G&A+sales+marketing+R&D grew by only 17%. Its LTM net revenue grew by 34% yoy (amid covid-19, at least two quarters’ sales impacted) while LTM costs (G&A+sales+marketing+R&D) grew only by 26%.
Canopy Growth (NASDAQ: CGC) is more aggressive in cutting costs. Its costs (G&A+sales+marketing+R&D) in decreased by 24% in 2020 Q3, while the revenue increased by 77% yoy.
Tilray (NASDAQ: TLRY) also cut 40% in those costs in 2020 Q3.