Nanaimo-based Tilray reports US$33.6M profit in Q4 as it merged with cannabis rival Aphria
Tilray Inc.'s chief executive blamed COVID-19 lockdowns for more than $100 million in revenue losses Wednesday, but hopes a recent merger will help it rebuild from the pandemic.
Irwin Simon, who took the helm of Tilray after it merged with Aphria Inc. in May, told analysts on a conference call that public health measures forced many cannabis stores to temporarily close and sent customers searching for product online, weighing on the company's results for the quarter ended May 31.
“Until just recently, in mid-June, there were over 800 stores in Ontario alone that had never opened their doors to customers because of COVID or could only do curbside delivery,” he said.
“This has now begun to change and many stores have since opened...although that of course, did not help our May ending fiscal quarter sales.”
The pandemic came as Tilray and the cannabis industry are still trying to educate customers about their constantly expanding product lines and pushed Tilray to use social media and e-commerce to reach and entice consumers, said Simon.
Despite the challenges, the company managed to report a US$33.6 million profit in its fourth fiscal quarter, up from a net loss of US$84.3 million during the same time last year.
Tilray's basic and diluted earnings per share for the quarter amounted to 18 cents, up from a loss of 39 cents per share in the year prior.
Analysts had expected Tilray, which reports its results in U.S. dollars, to record a loss of 10 cents per share, according to financial data firm Refinitiv.
Its net revenue for the quarter was US$142.2 million, up from US$113.5 million in the fourth quarter of 2020.
The results pushed Tilray's shares up by $3.55 or more than 22 per cent to $19.58 in mid-morning trading.
Simon said Wednesday that Tilray's future is rosy.
He pointed out that the Aphria merger had already generated US$35 million in synergies, bringing it closer to its US$80 million target.
He also predicted the company would see $4 billion in sales by 2024, in part because he has high hopes that the U.S. will federally legalize cannabis soon.
“Between CBD and THC, (the U.S.) is probably close to a $50-billion market and it's the biggest opportunity for us,” he said.
CBD is cannabidiol, a compound found in cannabis and hemp that doesn't produce a high but is believed to relax consumers, and THC is tetrahydrocannabinol, the main psychoactive component in cannabis.
Tilray, said Simon, intends to expand into the U.S. by looking for opportunities with multi-state operators, cannabis companies doing business in several states. He wants to integrate with them, merge or acquire some of them once legalization happens.
He also plans to focus on Tilray's Sweetwater Brewing Co. and Manitoba Harvest businesses in the U.S. by looking for consumer packaged goods brands in the alcohol and food space to work with to create products that could be infused with cannabis.
To further Tilray's U.S. ambitions, shareholders have been asked to meet Thursday to vote on a proposal centred on using more shares for acquisitions.
The proposal recently received the support of the Glass Lewis and ISS proxy advisory firms.
This report by The Canadian Press was first published July 28, 2021.
CTVNews.ca Top Stories
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
'State or state-sponsored actor' believed to be behind B.C. government hacks
The head of British Columbia’s civil service has revealed that a “state or state-sponsored actor” is behind multiple cyber-security incidents against provincial government networks.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
Mother assaulted by stranger while breastfeeding baby in her car: Vancouver police
A person was arrested in East Vancouver Thursday after allegedly entering a car while a mother was breastfeeding her four-month-old boy.
More than half the Canadians once detained in Syrian camps for suspected ISIS family members have returned home
A total of 29 Canadians have been freed from detention camps in northeast Syria and brought back to Canada since human rights advocates began lobbying for their release years ago.
Rare severe solar storm Friday could bring spectacular aurora light show across Canada
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Canada abstains from Palestinian UN membership vote but supports two-state solution
Canada was one of 25 countries that abstained from a United Nations vote on Palestinian membership that passed with overwhelming support on Friday.
Amish youth experience a rite of passage called Rumspringa. It’s not what you might think
The idea of “Rumspringa” has a specific spot in the American imagination. A rite of passage for young people in some Amish communities, Rumspringa is seen by most outsiders as a wild time away from strict Amish rules, when teenagers can experiment with the modern vices of the world.
Djokovic needs medical attention after getting knocked on the head by a water bottle at Italian Open
Novak Djokovic needed medical attention after apparently getting knocked on the head by a water bottle after a win at the Italian Open on Friday.