Tilray Inc (NASDAQ: TLRY) released its second-quarter financial results after markets closed on Tuesday, August 13.
The pot company posted a 371.1% jump in revenue, which it attributed to the legalization of recreational marijuana in Canada, growth in global medical markets, and its acquisition of hemp food producer Manitoba Harvest.
Shares of Tilray ended the regular session with a gain of 8.38% to $46.02, but declined 7.21% in after-hours trading to change hands at $42.70 apiece.
TLRY Earnings & Outlook
Tilray posted a net loss of $35.1 million, or $0.36 per share compared with a net loss of $12.8 million, or $0.17 per share in the same period last year.
Excluding items such as a non-recurring non-cash charge related to purchase accounting for the fair value of inventory, the Nanaimo, British Columbia had a net loss of $31.2 million, or $0.32 per share in Q2 2019. On average, analysts surveyed by Refinitiv were expecting the company to post a net loss of $0.25 per share in the quarter.
Gross margin increased to 27% from 23% in the first quarter, while analysts expected the company to post gross margin of 28.7%.
The company posted second-quarter revenue of $45.9 million, representing an increasing of 371.1% from $9.7 million in the same period last year. Analysts had called for revenue of $41.1 million in the quarter, according to data compiled by Refinitiv.
Total kilogram equivalents sold climbed to 5,588 kg from 1,514 kg in the earlier-year period. The company said average net selling price per gram dropped to $4.61 from $6.38 last year. Excluding excise tax, Tilray’s average selling price per gram was $3.92 in the second quarter of 2019.
Tilray CEO Comments
“We are pleased with our second quarter results and strong business momentum,” said Brendan Kennedy, Tilray President and Chief Executive Officer.
“Our team has executed against our plan, with adult-use revenue nearly doubling in the second quarter compared to the first quarter and gross margin increasing sequentially for the second quarter in a row. As we continue to grow, we remain focused on our long-term strategic objectives and deploying capital to maximize stockholder value,” Kennedy added.
Tilray Inc Profile
Tilray, headquartered in Nanaimo, Canada cultivates and sells medical and recreational cannabis through a portfolio of brands that include Canaca, Dubon, and Manitoba Harvest.
The bulk of Tilray’s sales are in Canada, but the company also sells CBD Products in the U.S. through a partnership with Authentic Brands Group and exports medical cannabis globally from its production facilities in Canada and Portugal. Tilray also has a partnership with AB InBev to develop cannabis-infused drinks. – Warrior Trading News