
Tilray trades 9.8% down as it reveals a wider than expected quarterly loss on Monday
- Tilray trades 9.8% down as it reveals a wider than expected quarterly loss on Monday.
- Tilray reports $219.1 million in net loss in the fourth quarter.
- Tilray boasted a net revenue of $46.9 million in the fourth quarter.
Follow Invezz on Telegram, Twitter, and Google News for instant updates >
Tilray
announced its quarterly performance results on Monday that suggested bigger loss
than previously estimated. The
Canada-based cannabis company attributed the loss to the massive impairment
charge. The Canadian marijuana market is faced with oversupply and a range of
other challenges which, according to the company, translated to higher costs and
poor financial performance.
Tilray
was seen trading 9.8% down in extended trading on Monday following the release
of its earnings report. It continued its downward rally later in the week and
is currently exchanging hands at $12.16 per share in the stock market that
marks an around 30% decline in 2020 so far. Its performance in 2019 also
remained largely challenged with an annual loss of around 75%. The stock opened
at over $70 per share in January 2019 but closed the year sharply lower at $17
in December. Tilray currently has a market cap of $1.26 billion.
Canada
Legalized Recreational Cannabis In October 2018
Copy link to section
In
October 2018, Canada announced the use of recreational cannabis to be legal
across the country. The majority
of Canadian marijuana companies, however, failed to expand their profits in
the next months.
In
the recent quarter, Tilray noted $112.1 million in non-cash impairment charges ascribed
to the company’s deal with Authentic Brands Group. As per the specifics of the
deal, Tilray is bound to share a part of its generated revenue with the brand
management company.
In
its announcement in February, the cannabis company reiterated its commitment to
contain its expenditures and improve profitability. As part of the scheme, it
announced a global restructuring that saw 1,443 workers or 10% of its workforce
laid off. Despite the job cut, the company failed to minimize its
administrative and other general expenses that were reported to have increased
by over 100% in the recent quarter.
Tilray
Recorded $219.1 Million In Net Loss In The Fourth Quarter
Copy link to section
Tilray
recorded its net loss to have expanded to $219.1 million in the fourth quarter
that translates to $2.14 per share. In the same quarter last year, Tilray’s net
loss was printed at a significantly lower $31.0 million (33 cents per share).
In the quarter that ended on 31st December, Tilray boasted a net
revenue of $46.9 million that marked over three times the figure revealed in
2108’s last quarter.
CEO
Brendan Kennedy of Tilray commented on Monday’s data and stated:
“Like
our peers, we have faced industry challenges, but we remain committed to
driving long-term value for our shareholders”.
Advertisement
Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.
More industry news






