Aphria Inc. (NYSE: APHA) reported a net loss for the second quarter of 2020, compared to profit last year. The company’s stock dropped during Tuesday’s pre-market session immediately after the announcement.

The Leamington, Canada-based cannabis company reported a net loss of CAD 7.9 million or CAD 0.03 per share for the quarter, compared to a profit of CAD 54.8 million or CAD 0.22 per share for the same period of last year. The bottom line was negatively impacted by provisions associated with the firm’s Tier 3 passive investment portfolio. Analysts were looking for a narrower loss.

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At CAD 120.6 million, revenues were sharply higher than in the year-ago quarter. The top-line, however, missed the Street veiw. Revenues from adult-use cannabis grew 46% from a year ago to CAD 29 million, while net cannabis revenue moved up 9%.

Aphria (APHA) slips to loss in Q2 despite revenue growth; stock dips

“We are continuing to expand our capabilities internationally with solid progress during the quarter in Germany and South America and look to monetize non-core assets. We are confident in our market position and our ability to generate sustainable profit growth. I am honoured to continue to work closely with our tremendous team around the world to fuel growth and value for all of our stakeholders, “ said CEO Irwin Simon.

The company said it is on track to generate acceleration in revenue and profit growth in the second half of the fiscal year, considering the robust outlook for the global cannabis industry. For fiscal 2020, the management expects net revenue in the range of CAD 575 million to CAD 625 million, with distribution revenue representing slightly more than half of the total revenue. Adjusted EBITDA is estimated to be between CAD 35 million and CAD 42 million.

Related: Aphria Q1 2020 Earnings Conference Call Transcript

Aphria also announced the appointment of Irwin Simon as its new CEO. Simon, chairman of the board, had been serving as interim CEO since February 2019.

Aphria shares dropped early Tuesday after closing the previous session sharply higher. The stock is down 18% since last year.

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