Regardless of a sharp enhance in income, Ontario-primarily based Aphria’s Q3 2018 profit of 12.9 million Canadian dollars ($9.six million) turned into a net loss of CA$108.two million for the third quarter of fiscal 2019.

The organization reported income of CA$73.six million for the third quarter ended Feb. 28 compared with CA$10.three million for the prior-year period.

Aphria mentioned it ended the quarter with slightly much more than $100 million in money.

Cannabis income accounted for just 24% of Aphria’s net income, and kilogram equivalents sold totaled two,637, down from three,409 the prior quarter.

Income increased 240% from the prior quarter, mostly distribution income attributed to assets in Europe and Latin America, especially CC Pharma in Germany.

The organization lately was chosen to be one particular of the 3 domestic cultivators in Germany.

CC Pharma is an importer and distributor of pharmaceuticals and cannabis, but Aphria’s facilities nonetheless lack EU-GMP certification, so the sales are derived from other suppliers.

The very same applies to Aphria’s importer in Italy, FL Group, which imports only cannabis created by Bedrocan in the Netherlands.

According to Aphria’s management discussion and evaluation filing, distribution gross margin is nicely under that of cannabis – 13.six% and 36.three%, respectively – which contributed to the company’s substantial net loss for the period.

The organization is forecasting income of CA$500,000 in 2019 and CA$1 billion in 2020, although management did not disclose for the duration of a conference contact with analysts how a lot of that would come from direct sales of cannabis.

Aphria’s bottom line was also negatively impacted by a $50 million noncash impairment charge related to its acquisition of LATAM Holdings.

Aphria trades beneath the ticker symbol APHA on the Toronto Stock Exchange and the New York Stock Exchange.