Tilray revenues and losses widen in fourth quarter
Tilray, Inc.
$1.73
13:04 19/04/24
Canadian marijuana outfit Tilray posted a wider than expected fourth-quarter loss even though revenues were bigger than forecast.
Revenues at the Nasdaq-listed company surged 203.8% year-on-year to $15.5m (C$20.9m), driven by bulk cannabis sales. Wall Street analysts had predicted revenues of $14.1m, according to Factset.
Total kilogram equivalents sold increased almost 300% to 2,053kg, while average net selling price per gram improved to $7.52 from $7.13 a year earlier.
Tilray turned in an unadjusted net loss of $31m for the fourth quarter, significantly wider than the $3m loss posted a year earlier, as the firm began taking capital investments in order to fund the expansion of its production capacity, resulting in increased costs. Loss per share of $0.33 was well ahead of the Street estimate of $0.14.
"2018 was a very successful year for Tilray with many corporate milestones," said president and chief executive officer Brendan Kennedy. "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.
“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.”
Tilray said it had been busy focusing on M&A activities during the fourth quarter, as three new companies were added to the group, including spending $317m to acquire hemp and natural foods producer Manitoba Harvest; $53.4m to buy Natura Naturals Holdings, a licensed cannabis cultivation facility; and licensed cannabis company Alef Biotechnology in Chile to allow expansion throughout Latin America.
For the full year, Tilray increased sales 110% to $43.1m (C$56.4m) and made a net loss of $67.7m, or $0.82 per share, increased from $7.8m, or $0.10 per share in 2017.
For the first quarter, analysts expect losses of 19 cents a share on sales of $19m.
As of 1005 GMT, Tilray shares had picked up 2.2% in pre-market trading to $73.80 each.