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by Stockwatch Business Reporter

The S&P/TSX Cannabis Index added 21.18 to 237.29, while the CSE Composite Index added 5.86 to 837.55. Ontario cannabis grower Aphria Inc. (APHA) added $2.55 to $15.25 on 25.1 million shares, after releasing quarterly financials that, for once, drew gasps of delight instead of dismay. This is the first time in recent memory that Aphria's stock has headed higher on an earnings report.

There were no actual earnings to report, unfortunately -- not before applying some accounting magic. Aphria posted an overall net loss of $120-million for its fiscal second quarter ended Nov. 30. Yet if non-recurring items are excluded, such as expenses related to the November takeover of U.S. craft beer brewer SweetWater, Aphria turned an adjusted net profit of $3.2-million, or one cent a share. This was significantly better than analysts' predictions of negative three cents a share.

Aphria also enjoyed record net revenue of $160.5-million and adjusted EBITDA of $12.6-million in the quarter, exceeding analysts' predictions of $153-million and $11-million, respectively. The company's Canadian cannabis operations saw their seventh consecutive quarter of higher sales, despite stiff competition in a crowded market. The European pharmaceutical distribution business had a surprisingly good quarter as well.

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