Aphria Inc.
TSX VENTURE : APH

Aphria Inc.

October 26, 2015 08:30 ET

Aphria Reports Results for Fiscal Q1 2016

Quarterly revenue of $950,740 with adjusted gross margin of 58.2%

LEAMINGTON, ONTARIO--(Marketwired - Oct. 26, 2015) - Aphria Inc. ("Aphria" or the "Company") (TSX VENTURE:APH) today reported its financial results for the three months ended August 31, 2015. All amounts are expressed in Canadian dollars, unless otherwise stated.

Fiscal Q1 2016 Financial Highlights

3 months ended
August 31, 2015
Revenue $ 950,740
Cost of goods sold (605,350 )
Change in biological assets 333,165
Gross profit 678,555
Adjusted Gross profit 553,515
Adjusted Gross margin 58.2 %
Net loss (476,825 )
Net loss per share (basic and diluted) (0.01 )

Revenue for the three months ended August 31, 2015 was $950,740, representing a 90% increase over the previous quarter's revenue (Q4 ended May 31, 2015 - $499,890; Q1 2015 - $nil)

Adjusted gross profit for the first quarter ended August 31, 2015 was $553,515, with an adjusted gross margin of 58.2% from retail and wholesale shipments.

The net loss for the three months ended August 31, 2015 was $476,825, or $0.01 per share versus $481,380 in the previous quarter, or $0.01 per share (Q4 ended May 31, 2015; Q1 2015 - $1,600,104 or $0.04 per share).

"Aphria experienced significant sales growth in the first fiscal quarter, supported by our growing patient base. As we move into 2016, we are continuing to see growth in patient registrations, with over 2,800 registered patients to date," stated CEO Vic Neufeld.

The adjusted gross profit and adjusted gross margin are non-GAAP financial measures, which are explained in Management's Discussion & Analysis under "Non-GAAP Financial Measures", a copy of which has been filed today under the Company's profile on www.sedar.com.

About Aphria

Aphria Inc., a company continued under the laws of the Province of Ontario and based in Leamington, Ontario, is in the business of producing, supplying and selling medical marijuana pursuant to the Marihuana for Medical Purposes Regulations (the "MMPR"). Under the MMPR, Health Canada is responsible for the oversight of commercial medical marijuana growers such as Aphria. Aphria's common shares are listed on the TSX Venture Exchange under the ticker symbol "APH". For more information, visit www.Aphria.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to internal expectations, estimated margins, expectations for future growing capacity and expectations with respect to future production costs. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the medical marijuana industry in Canada generally, income tax and regulatory matters; the ability of Aphria to implement its business strategies; competition; crop failure; currency and interest rate fluctuations and other risks.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange (the "Exchange") nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

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