Licensed cannabis producer Aphria posts second consecutive quarterly profit

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Shares of Aphria were up more than 13 percent in the first two hours of trading this morning. This came after the Leamington, Ontario-based cannabis company released surprisingly good financial results.

Aphria exceeded analysts' expectations by posting net income of $16.4 million in the first quarter and adjusted earnings before income tax, depreciation, and amortization of $1 million.

It's the second consecutive quarterly profit.

Net revenue rose 849 percent on the quarter to $126.1 million.

"Our success was also driven by our international business and the strength and growth of our brands, particularly Broken Coast, despite a small fire at our British Columbia facility at the end of the quarter," Aphria chairman and interim CEO Irwin D. Simon said in a news release. "This solid start to the year keeps us on track to achieve our fiscal year 2020 financial outlook."

As of this writing, Aphria shares are trading at $7.04. That's still off sharply from the 52-week high of $20.96.

Last last year, Aphria shares nosedived after short-sellers pounced on the company's deal to buy licences in Latin America owned by LATAM Holdings, claiming it paid far too high a price.