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%.