Tilray misses Q1 expectations despite 38% surge in pot sales
BNN Bloomberg
Despite a jump in cannabis sales that maintained Tilray Inc.'s top spot in the Canadian market, the pot giant's fiscal first-quarter results missed analyst expectations amid rising costs and flat revenue from its German pharmaceutical distribution business.
Despite a jump in cannabis sales that maintained Tilray Inc.'s top spot in the Canadian market, the pot giant's fiscal first-quarter results missed analyst expectations amid rising costs and flat revenue from its German pharmaceutical distribution business.
Tilray reported first-quarter revenue of US$168 million, an increase of 43 per cent from the prior year, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 58 per cent to US$12.7 million. The company’s net loss widened to US$34.6 million compared to US$21.7 million a year earlier as administrative and transaction costs rose substantially in the most recent three-month period.
Analysts tracked by Bloomberg expected Tilray to report US$173.6 million in revenue and US$13.6 million in adjusted EBITDA in its first quarter.
Cannabis sales rose nearly 38 per cent in the first quarter to US$70.4 million, which should reaffirm Tilray as Canada's biggest pot company despite domestic competition that continues chipping away at market share for major players. Roughly US$10.3 million of those sales came from Tilray's international cannabis business, which more than doubled the prior quarter's revenue as the European medical market shapes up as a significant growth driver.
"We believe we are ideally positioned to succeed due to our global consumer-packaged goods expertise and scale, our diverse portfolio of brands, our reputation as a trusted supplier of high quality cannabis, battle-tested leadership and a relentless focus on driving sustainable shareholder value," said Irwin Simon, Tilray’s chief executive officer, in a statement.
However, Tilray's Canadian cannabis presence continues to face pressure from an influx of domestic competition while the economy recovers from pandemic-related lockdowns.
