Tilray, Inc. (Nasdaq: TLRY) reported that its net loss for the quarter was $30.3 million or $0.32 per share compared to a loss of $5.2 million or $0.07 per share for the prior year period. Even though the revenue increased by 195.1% to $23.0 (C$31.0) million, versus last year’s $7.8 million – it was less than the net loss. The non-GAAP adjusted net loss for the quarter was $25.2 million or $0.27 per share for the first quarter of 2019.
The company attributed the increase in revenue to the legalization of Canadian adult-use in 2018 and the addition of hemp food sales from the Manitoba Harvest acquisition. Tilray attributed the rise in net losses to non-recurring acquisition-related charges. The company reported that the adjusted EBITDA grew to a loss of $14.6 million versus last year’s loss of $3.2 million for the same time period. period.
Tilray said that the increased “net loss and Adjusted EBITDA declines were primarily due to the increase in operating expenses related to growth initiatives, the addition of Manitoba Harvest, and the expansion of international teams.”
“We are pleased with our first quarter results and the ongoing, substantial progress our team has made to position Tilray as a global leader in the cannabis industry,” said Brendan Kennedy, Tilray President and CEO. “We have made significant progress integrating our recent acquisitions of Manitoba Harvest and Natura Naturals, accelerating our entry into the United States hemp and CBD markets, and increasing our production and manufacturing capacity in North America and Europe. As we expand our operations around the world, we remain focused on making disciplined investments to maximize the multiple paths to value creation we are aggressively pursuing for our visionary investors.”
While the company sold more kilograms, the prices fell for what it sold. Total kilogram equivalents sold increased over two-fold to 3,012 kilograms from 1,299 kilograms in the prior year period. Unfortunately for the company, the average net selling price per gram decreased to $5.60 (C$7.54) compared to $5.94 (C$8.00) in the prior year period. The average net selling price excluding excise taxes was $5.28 (C$7.02) per gram for the first quarter of 2019.
The company continues to increase production. Tilray is making an investment of $32.6 million to increase its Canadian production and manufacturing footprint by 203,000 square feet across three facilities in Nanaimo, British Columbia, Leamington, Ontario, and London, Ontario. The investment will expand Tilray’s total production and manufacturing footprint from 1.1 million to 1.3 million square feet worldwide.