Canadian-based Tilray, Inc. (Nasdaq: TLRY) reported that second-quarter revenue increased 371.1% to $45.9 (C$60.9) million versus last year’s $9.7 million. Tilray said that the increase in revenue was driven by the Manitoba Harvest acquisition, the legalization of the Canadian adult-use market, and growth in international medical markets, particularly in Europe. Excluding excise tax, revenue was $42.0 (C$55.8) million.
Net Losses Rise to $35 Million
The company delivered a net loss for the quarter of $35.1 million or $0.36 per share versus last year’s loss of $12.8 million or $0.17 per share. The adjusted net loss for the quarter was $31.2 million or $0.32 per share for the second quarter of 2019. The adjustments to the net loss are non-recurring acquisition-related charges and a non-recurring non-cash charge related to purchase accounting for the fair value of inventory. Adjusted EBITDA was a loss of $17.9 million compared to a loss of $4.7 million the prior-year period. The company said that the increased net loss and Adjusted EBITDA declines were primarily due to the increase in operating expenses related to growth initiatives, interest expense from our convertible notes, the addition of Manitoba Harvest and Natura businesses, and the expansion of international operations.
“We are pleased with our second-quarter results and strong business momentum,” said Brendan Kennedy, Tilray President, and Chief Executive Officer. “Our team has executed against our plan, with adult-use revenue nearly doubling in the second quarter compared to the first quarter and gross margin increasing sequentially for the second quarter in a row. As we continue to grow, we remain focused on our long-term strategic objectives and deploying capital to maximize stockholder value.”
The average net selling price per gram decreased to $4.61 (C$6.12) versus last year’s $6.38 (C$8.36). The decrease was due to a reduced mix of higher-priced extract products and a greater mix of adult-use revenue, which are at lower prices per gram compared to other channels. Total kilogram equivalents sold more than tripled to 5,588 kilograms from 1,514 kilograms in the prior-year period.