The Daily Hit: July 29, 2020

It’s time for your Daily Hit of cannabis financial news for July 29, 2020.

On The Site

Scotts Miracle-Gro

The Scotts Miracle-Gro Company (NYSE: SMG) reported fiscal third-quarter sales increased 28% to $1.49 billion, beating analyst estimate for $1.3 billion (Yahoo Finance). The stock was popping over 12% on the revenue and earnings beat.

Hawthorne sales increased 72% to $302 million versus $176 million for the same time period a year ago. The U.S. consumer increased by 21% to $1.08 billion from $889.1 million.

The continued strength of the business in fiscal 2020 caused Scotts to increase its guidance for full-year sales, adjusted earnings, and free cash flow. The new sales forecast for fiscal 2020 is for 26-28% growth and is estimating the U.S. consumer segment grows 20-22%. Hawthorne sales are forecast to grow 55-60%. Scotts had said back in June, that it expected U.S. Consumer sales to increase 9-11% in fiscal 2020 and Hawthorne to increase 45 to 50%.

Aphria

Aphria Inc. (NASDAQ: APHA) stock was falling almost 10% in early trading after the company reported its financial results for the fourth quarter and fiscal year ended May 31, 2020, in Canadian dollars. Aphria delivered net revenue of $152.2 million in the fourth quarter, an increase of 18% from the prior-year quarter, and an increase of 5% from the prior quarter. This number also beat the analyst estimate of $149 million.

However, the stock was getting beaten up after the company also reported a $98.8 million net loss for the fourth quarter, which was much worse than last year’s net income of $15.7 million. The losses were attributed to a non-cash impairment of $64.0 million in the quarter, which was due to “measures taken with respect to certain of the Company’s international businesses in response to the COVID-19 pandemic.”

For the full year, Aphria reported net revenue of $543 million, with a net loss of $84 million. The 2020 revenue increased by 129% from $237.1 million in 2019.

Pennsylvania

A new study is being conducted to measure the quality of life that medical cannabis patients in Pennsylvania report when using cannabis to address pain relief.  The University of the Sciences and Releaf App have partnered with the Pennsylvania dispensary Keystone Canna Remedies to conduct a second collaborative research study on the effectiveness of Pennsylvania’s medical cannabis program.

An original study by that group found that cannabis products with THC gave the greatest symptom relief in patients. The report said that on a 10-point scale, the pain relief seen in patients taking primarily THC products was nearly two points, a statistically significant difference from one point reduction seen in patients taking primarily CBD based products.

 In Other News

CV Sciences, Inc. (OTCQB:CVSI) maker of hemp derived cannabidiol (CBD) products, today announced a strategic category expansion into condition specific dietary supplements with the launch of CV™ Acute, the first of several products to be launched under its new Immunity product line. This new non-CBD product line will open markets and sales channels for the Company, including major e-commerce retailers not currently accessible by CBD-based products.

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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