Aphria Inc (NYSE:APHA) Q2 2020 Earnings Conference Call - Final Transcript

Jan 14, 2020 • 08:00 am ET

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Aphria Inc (NYSE:APHA) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions]. Our first question comes from the line of Owen Bennett of Jefferies. Please go ahead. Your line is open.

Analyst
Owen Michael Bennett

Good morning, guys. Hope, you all are well.

Executive
Irwin D. Simon

Good morning.

Analyst
Owen Michael Bennett

Good morning. And yeah, just a couple of questions please. First of all, so you gave a number of factors leading to the sales downgrade and could you maybe just put some actual numbers on these and versus initial expectations and actually which of these were most impactful?

And then secondly, could you just give a bit more comment around the shift in sales mix impacting the average price in the quarter. Thanks very much.

Executive
Carl Merton

Thanks, Owen. So just in terms of the guidance, we have laid out an order in the discussion and so I think the biggest item was the impact of the change in the store counts or the lack of change in store counts in Ontario. Those 40 additional stores that were supposed to be opened in sometime in the late fall and now don't look like they're going to get opened until March, maybe late April. That certainly had the biggest impact. The province of Alberta's temporary ban was next in order of priority. And then the last piece related more to the purchase cannabis in the quarter due to the delay in Aphria Diamond's license previously.

With respect to sales mix in the quarter, we saw a greater increase in the brand mix itself. And so we see higher prices per gram in Solei and RIFF and slightly lower prices in Good Supply and there was a little bit more volume on Good Supply in the quarter.

Analyst
Owen Michael Bennett

Okay, cool. Thanks very much.

Executive
Carl Merton

Thank you.

Operator
Operator

And your next question comes from the line of Aaron Gray of Alliance Global Partners. Your line is open. Please go ahead.

Analyst
Aaron Gray

Hi, thanks for the question and are Irwin, congrats on the official title.

Executive
Irwin D. Simon

Thank you.

Analyst
Aaron Gray

So just wanted to dive a little bit more into the average price per gram. So I can appreciate in terms of how it kind of declined sequentially given the increased volume for good supply, but how do we expect that kind of going forward as you're going to have more mix from vape coming online. And then with beverages and edibles in the very near future. And then also you made a comment on Aphria Diamond while I believe you referenced the wholesale market from sales coming from down to the fourth quarter. So should we expect kind of a lower price per gram there too to kind of have an impact. So just high level, how to think about that line item kind of going forward over the next couple of quarters? Thank you.

Executive
Irwin D. Simon

So I'll take the question on the Aphria Diamond and the wholesale piece first just because I think there might have been just a misunderstanding in terms of that comment. Aphria Diamond's sole customer is Aphria. And so all of the product coming from Aphria