According to Aphria’s interim CEO Irwin Simons, the Canadian black marijuana market is pretty huge.
“There’s a $5 billion market out there [where] products are sold into the illicit market,” Simons says.
Aphria is working on “taking that away from the illicit market and building [our] brands and building consumer confidence,” he said to “Mad Money’s” Jim Cramer recently.
“This industry used to be about who can get the right press release out. It’s no longer about press release. Organic growth and making money and rewarding your shareholders,” he added.
Canada legalized recreational marijuana sales back in October 2018.
Aphria recently reported a sales beat and positive earnings before interest, taxes, depreciation and amortization in its fiscal fourth quarter. Net revenue was $128.6 million, coming ahead of the analyst expectations of $103.5 million.
“Because they’re looking at that cannibalization of where THC and where cannabis is going to bite into sales,” Simon said. “We know consumers are drinking less alcohol … and you look at millennials today it’s more and more cannabis consumption out there.”
“This industry used to be about who can get the right press release out. It’s no longer about press release,” he said. “Organic growth and making money and rewarding your shareholders, Jim.”