Tilray CEO is ‘happy’ despite Q2 loss

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on Jan 10, 2023
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  • Tilray Inc says it swung to a loss in its fiscal second quarter.
  • CEO Irwin Simon discussed the earnings report on CNBC.
  • Tilray stock has lost roughly 40% since early December.

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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.

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Tilray CEO reacts to the earnings report

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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

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  • 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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