Tilray Posts Wider-Than-Expected Q2 Loss, Revenue Beat

Photo courtesy of Tilray

Tilray Inc (Nasdaq: TLRY)'s second-quarter revenue rose 371.1% year-over-year to $45.9 million, the Canadian cannabis company said Tuesday. The number beat the consensus estimate of $41.1 million.

The company's earnings per share loss of 32 cents was wider than the Street was expecting, missing the consensus estimate of a 25-cent-per-share loss. The adjusted net loss in the quarter amounted to $31.2 million.

The revenue increase was driven by the acquisition of hemp foods manufacturer Manitoba Harvest — Tilray announced the closing of the deal in February — legalization of adult-use marijuana in Canada and growth in international medical markets, according to Tilray.

Total kilogram equivalents sold rose from 1,514 kg one year ago to 5,588 kg.

Tilray's average net selling price per gram fell from $6.38 to $4.61 year-over-year. Excluding excise tax, the company's second-quarter average selling price per gram was $3.92.

The decline is a result of a reduced mix of pricier extracts and a greater mix of adult-use revenue, which is generated at lower prices per gram, Tilray said.

The gross margin rose from 23% in the first quarter to 27%. The figure is impacted by higher costs tied to the ramping of cultivation facilities in Canada and Portugal, as well as the acquisition of third-party supply, according to the company.

"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," Tilray President and CEO Brendan Kennedy said in a statement.

Tilray's stock was down 2.2% in after-hours trading at $45 per share. The stock closed the regular session higher by 8.38% at $46.02.

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