Tilray says the coronavirus had no significant impact on its ability to sell marijuana

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The COVID-19 pandemic has not significantly affected the ability of cannabis producer Tilray Inc. to sell pot to medical patients and recreational customers, the company announced on Monday as it announced a net loss more important than expected.
Tilray Actions
TLRY,
+ 3.85%

fell 5.3% in extended session after closing up 3.9% to close at $ 8.08 in Monday trades. Title lost just over half its value this year, like ETF Cannabis
THCX,
-0.34%

fell 31%.

The British Columbia-based cannabis company reported a net loss of $ 184.1 million in the first quarter, which equates to $ 1.73 per share, compared to a loss of $ 29.4 million, or 31 cents per share, a year ago. The Company’s larger than expected losses are the result of non-cash changes in the value of its warrants, an asset impairment charge of $ 29.8 million and $ 28.1 million in foreign currency charges due to the relative weakness of the Canadian dollar.
Chief Financial Officer Michael Kruteck said on Monday that the $ 28.9 million impairment charge was the result of regulatory uncertainty over his cannabidiol, or CBD, with the Authentic Brands Group in the United States. The Drug Administration has stated that foods and beverages containing CBD, among others, fall under its jurisdiction.

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Tilray’s revenues increased 126% to $ 52.1 million from $ 7.9 million a year ago, and the company said it paid $ 5 million in excise duties, which many packaged consumer goods companies derive gross revenues. Tilray’s revenue increased 11% from the fourth quarter.
In the call for results, Kruteck said that, like many cannabis operators, Tilray saw an increase in sales in March, with people storing cannabis before home orders in Canada. Krutek also said that in April sales slowed, but to a higher level than in January and February.
The company sold $ 5.8 million of medical weeds overseas, which was higher than sales of medical products in Canada for the first time. “International medical care will never come back,” said executive director Brendan Kennedy during the call for results. “It will always exceed our Canadian medical revenues.”
In Canada, Tilray sold $ 20.9 million in recreational cannabis and $ 4.1 million in medical cannabis. Manitoba Harvest, its hemp feed unit, reported sales of $ 21.3 million.
Analysts polled by FactSet expected a loss of 44 cents a share on sales of $ 49.4 million.
In a statement, Kennedy said the company had predicted it would turn into profit using a non-standard profitability measure. He also said the company has taken several steps to make its operations more efficient, which should save it $ 40 million a year, although the measures were not “fully reflected” in the results of the trimester.
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Tilray said the average net selling price of cannabis per gram has dropped to $ 5.28 from $ 5.60 a year ago; excluding excise taxes, the price was $ 3.49 per gram.
To date, Tilray has stated that it has had no material impact from the coronavirus related to its sales of medical cannabis, sales of recreational pots in Canada, or its Manitoba Harvest hemp products. In Canada, cannabis companies have been largely allowed to continue operating, although additional security measures are required.
“Some of our shipments [have been] delayed here and there by a few days, “said Kennedy on the call. “Overall, we did not find any significant distribution issues related to COVID-19 in Canada or abroad during the first quarter and throughout April and the first part of May.”
In March, Tilray sold shares for $ 90.4 million at $ 4.76 per share, less than a third of what it listed for shares when it was released. Tilray signed up for Nasdaq at $ 17 per share in 2018, months before Canadian legalization of the use of recreational pots, and at one point his shares briefly touched $ 300 in intraday trading. Tilray raised funds in March as Dow Jones Industrial Average
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and S&P 500
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suffered their largest losses in one day since the October 1987 crash.
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