Cryptocurrency NewsTop News

Tilray Reports Wider Loss in Q1 as Surging Costs Offset Jump in Revenue

imageStock Markets9 hours ago (May 11, 2020 04:41PM ET)

By Yasin Ebrahim – Cannabis producer Tilray reported a wider-than-expected loss as a surge in costs offset revenue that more than doubled in the first quarter of the year, driven by stronger international medical sales.

Tilray (NASDAQ:TLRY) rose about 2% in after-hours trading.

In the first quarter of the year, Tilray reported a loss of $1.70 a share, much worst than consensus estimates for a loss of $0.49 a share. Revenue rose 126% to $52.1 million topped estimates of $54.55 million.

The jump in revenue was driven by “cannabis sales, which experienced meaningful increases across all channels with the exception of bulk, and the inclusion of the Manitoba Harvest acquisition for a full quarter in 2020 compared to a partial quarter in the prior year,” the company said.

The miss on the bottom line comes as product costs jumped to $37.2 million from $17.3 million, weighing on margins, which fell 200 basis points to 21%.

“As evidenced by our International medical sales in the quarter, we expect this segment to demonstrate continued growth and positively impact margins. During and since the first quarter, we took significant steps to drive efficiencies across our business, enabling us to realize annualized cost savings of approximately $40 million compared to fourth quarter 2019 run rates. While the positive impact of these actions are not fully reflected in this quarter’s results, they will become more clearly evident over the course of this year,” it added.

The international medical cannabis division produced sales that exceeded Canada medical sales by 43% in the quarter.

Total cannabis kilogram equivalents sold increased 92.4% to 5,794 kilograms from 3,012 kilograms in the first quarter of 2019, but the average cannabis selling price per gram decreased to $5.28 (C$7.16) compared to $5.60 (C$7.54) a year earlier amid a shift in product and channel mix.

“To date, the (c)ompany has not experienced any material Covid-19 impacts related to its ability to serve patients and consumers around the world with medical cannabis products, adult-use cannabis products in Canada, and Manitoba Harvest hemp products,” Tilray said.

Tilray Reports Wider Loss in Q1 as Surging Costs Offset Jump in Revenue

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!