Shares of Tilray Inc (NASDAQ: TLRY) ended about 7.0% down on Monday after the cannabis company reported a loss for its second financial quarter.
Tilray CEO reacts to the earnings report
Still, CEO Irwin Simon is satisfied with the quarterly performance. Explaining why on CNBC’s “Closing Bell”, he said:
At a constant currency, we’re up over last year and quarter-over-quarter. There’s been significant price compression in Canada, almost $12 million YoY. So, I’m happy considering what’s going in global economy and cannabis world.
In the earnings report, the Nasdaq-listed firm also confirmed that it’ll soon meet its target for annualised cost savings of $130 million. Tilray maintained its leading share in Canada this quarter. Reiterating the strategy for the U.S., CEO Simon added:
In the U.S., we’ve gotten into the spirits business. We’ve gone into the beer business, into the wellness food business. Right now, it’s to grow our U.S. businesses into consumer-packaged goods with adjacencies.
He did agree that U.S. legalisation wasn’t on the cards for anytime soon.
Tilray second-quarter financial highlights
Lost $61.64 million that translates to 11 cents a share
That compares to $5.8 million of profit last year
Adjusted loss was 6 cents a share as per the press release
Revenue slid from $155.15 million to $144.14 million
Consensus was 6 cents loss on $154.8 million revenue
According to Tilray, it completed the Montauk Brewing Co acquisition in Q2. CEO Simon also noted:
Our plan is to drive our Canadian sales by organic growth, innovation, and we’ll do some more acquisitions there. The Canadian market is a $7.0 billion plus market, so, there’s lots of opportunities in Canada. Europe, same thing.
Since early December, Tilray stock has lost roughly 40%.
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