Canadian cannabis company Aphria Inc. released its fourth quarter financial report on Thuesday.
The company sold 5,574 kilograms of cannabis, generating $28.6 million. Compared to the previous quarter, where it sold just 2,636 kilograms of cannabis in both the recreational and medical markets, the fourth quarter was a huge wine.
“Our team’s solid execution across key areas of our business resulted in strong adult-use revenue growth and a profitable fourth quarter,” interim CEO Irwin Simon said in a press release.
Aphria reported net income of C$15.8 million ($11.9 million), or 5 cents a share, compared with losses of $C5 million, or 43 cents a share, in the year-ago period.
“There’s probably C$1 billion worth of vape sales in the black market,” Aphria Chief Executive Irwin Simon said. “The illicit market today is the biggest market out there.”
When asked whether this black market was Aphria’s largest competitor, Simon said, “Without a doubt.”
Shares soared over 30% in extended hours on Thursday as Wall Street digested the company’s guidance.
Company executives said they expected revenue net of excise taxes in the range of C$650 million to C$700 million. Simon said the company aims to hit a C$1 billion run rate by the end of the fiscal year.
“At the last company I ran, my marketing budget was 20% of my costs,” Simon said.
“Right now, I want to get Aphria’s brands into a lot of consumer’s hands. We make sure it’s available and priced right, and that’s talking to consumers.”