Tilray Flies High After Posting Strong Sales


Tilray Inc (NASDAQ: TLRY)

Canadian pot conglomerate Tilray Inc. on Monday announced its financial results for the fourth quarter and full year ended December 31, 2018. The Canada-based cannabis producer saw its sales jump more than 200% during the fourth quarter to $20.9 million.

This is the first time that Tilray has released full quarter financial results since Canada legalized recreational cannabis. Tilray stock, which has lost 53% over the past six months, was up more than 4% in the after-hours trading session Monday immediately following the company’s earnings. The shares ended regular trading up 0.36% ahead of the earnings release report.

TLRY Earnings & Outlook

For the three months to Dec. 31, Tilray reported fourth-quarter net loss of $31 million, or $0.33 per share, up from a net loss of $2.9 million, or $0.04 per share, in the same a year earlier. Q4 2018 net loss included non-cash stock-based compensation charges of $4.1 million, up from $34 thousand in the year-ago period.

Revenue jumped 203.8% to $15.5 million from 15.5 million in the year-ago period, thanks to bulk sales, accelerated wholesale distribution in export markets, and inaugural sales in the Canadian adult-use market.

Analysts, on average expected Tilray to report fourth-quarter net loss of $0.14 per share on revenue of $14.1 million based on data compiled by FactSet. In the third quarter, the company reported net loss of $0.20 per share on revenue of $10.05 million.

Total kilograms of weed sold during the quarter rose to 2,053 kilograms from 694 kilograms in the same three months in 2017. The average price per gram, the company said, rose 5% year-over-year to $7.52.

For calendar 2019, analysts expect Tilray to post first-quarter net loss of $0.19 per share on revenue of $19 million. For fiscal full year, its revenue is expected to grow 350% from calendar 2018.

Tilray CEO Comments

“2018 was a very successful year for Tilray with many corporate milestones. Our team made significant progress on our long-term initiatives including increasing production capacity, expanding and strengthening strategic partnerships, and acquiring complementary businesses to accelerate our future growth and leadership position in medical and adult-use cannabis,” commented Brendan Kennedy, President and Chief Executive Officer of Tilray.

“Looking ahead, we remain committed to pursuing global growth opportunities and will be disciplined in deploying capital, particularly in the United States and Europe, where we believe we have multiple paths for value creation,” Kennedy concluded.

Tilray, Inc. Profile

Tilray Inc is engaged in sale and development of medical cannabis. Geographically, the company derives majority of its revenue from Canada. The product categories of the company include dried cannabis which include whole flower and ground flower, and cannabis extract which include full spectrum and purified oil drops and capsules.