In Pursuit of Profitability Abroad, Has Aphria Left Canada Behind?

Aphria's (NYSE: APHA) latest earnings report released on Oct. 15, was a breath of fresh air in an otherwise bleak and disappointing marijuana sector. Not only did the pot grower manage to increase its top line substantially year over year in Q1 2020, but Aphria also recorded a net profit for the second quarter in a row, something few of the top-rated cannabis companies have managed to do.

However, it is worth pointing out that Aphria accomplished these feats in large part thanks to its international operations. In particular, Aphria's operations in Germany have been instrumental to the company's recent success. The pot grower completed the acquisition of CC Pharma -- a German medical cannabis distributor -- earlier this year. Revenue from CC Pharma accounted for about 74% of the company's net revenues during its latest reported quarter.

Aphria's operations in South America are also noteworthy. The company's LATAM acquisition landed it in a world of trouble because of allegations that it had overpaid for the deal in an effort by some of its executives to enrich themselves. But the company now boasts a presence in South America (it owns assets in Argentina, Brazil, and Columbia), a promising marijuana market. Recreational uses of pot are already legal in Uruguay and might soon become legal in Mexico.

Source Fool.com