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Tilray Inc. shares rose about 4% after normal business hours, after the Canadian weed maker outperformed the consensus-based revenue forecast, almost three times that of sales, but lost more money than expected by analysts.
The company reported net losses of $ 30.3 million in the first quarter, or 32 cents per share, compared to $ 5.2 million, or 7 cents per share, over the same period of the year. previous. Tilray
TLRY, + 4.88%
revenues reached $ 23 million, up from $ 7.8 million a year ago. Analysts surveyed by FactSet were counting on a loss of 25 cents per share on a $ 20.5 million business figure. For the second quarter, analysts model losses of 25 cents per share on sales of $ 42.2 million.
CEO Brendan Kennedy told MarketWatch by phone that, despite widespread predictions of an overabundance of cannabis supply in Canada, this has not proven to be the case. . In fact, Tilray continues to have difficulty sourcing enough high-quality marijuana, and Kennedy believes that supply problems will remain a problem in Canada for the next 18 to 24 months.
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In the short term, Tilray is increasing its growing capacity and Kennedy has highlighted his ability to expand into Canadian facilities and his outdoor activities in Portugal. The company reported investing $ 32.6 million in increased production in Canada, representing 203,000 square feet spread over three facilities in British Columbia and Ontario.
"In ten years, I want Tilray to grow 5% of the product," said Kennedy.
Tilray reported selling $ 7.9 million worth of marijuana for recreation in the first quarter and $ 7.8 million worth of medical cannabis directly to patients and in bulk. Tilray sold $ 1.8 million worth of jars for international medical uses.
Overall, the company sold the equivalent of 3,012 kilograms of pot, a measure that Kennedy called strange. He predicted that after the start of sales of edible products in Canada later this year, the number of kilograms sold would no longer be relevant to investors.
"This is an emerging sector and you will see the indicators change," he said.
Kennedy says that companies were once valued on their "financing capacity" – a number referring to the amount of space that a company had before it could raise more money – and that one It was often inflated, causing a rise in market values.
"Some of them have lied about their funded capacity," Kennedy said.
For the first time as a public company, Tilray also specified the exact amount of excise tax revenue paid – excluding this figure, it achieved a turnover of 21.5 million dollars in the first quarter.
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"We heard the comments [from investors] and looked at how everyone else was reporting, "said Kennedy, who was asked about the disclosure of net excise tax revenues, as most Canadian cannabis companies did.
In the first quarter, Tilray acquired Manitoba Harvest for up to $ 310 million, adding a Canadian-based hemp food manufacturer that distributes products in the United States and Canada. Tilray also purchased Natura Naturals Holdings, a licensed cannabis producer, for up to $ 54 million.
According to documents filed Monday by the Securities and Exchange Commission, Manitoba Harvest 2018 losses amounted to $ 5.5 million on sales of $ 67.5 million. The combined net losses of Tilray and Manitoba Harvest were $ 77.1 million on sales of $ 110.6 million. In the first quarter, the company reported selling $ 5.6 million worth of food, which represents a portion of Manitoba Harvest's contribution to revenues.
The company stated in a separate document that it was not required to disclose the historical financial performance of Natura Naturals or to indicate how it would contribute to the profitability of the company.
Tilray share fell 37% in the last three months, the S & P 500 Index
SPX, + 0.80%
gained 2.4%. Horizons Marijuana Life Sciences Index ETF lost 2.3% in the last three months.
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