Tilray (TLRY) reported that its revenues in the second quarter increased to $9.7 million, an increase of 95.2% over last year’s $4.9 million for the same time period. The company said that the jump was due to increased patient demand in Canada, sales to licensed producers and international sales.
The net loss for the quarter rose substantially to $12.8 million versus last year’s $2.4 million for the same time period. The higher losses were blamed on costs related to going public, increased operating expenses to fuel growth and the expansion of international teams. The company also reported an adjusted EBITDA loss of $4.7 million compared to a loss of $1.9 million for the second quarter of 2017. The net loss included non-cash stock compensation charges of $5.6 million compared to a $35 thousand charged in the prior year period.
“We are very pleased with our strong start to 2018. Tilray is well-positioned to continue to pioneer the development of the global medical cannabis market and to become a leader in the adult-use cannabis market in Canada,” said Brendan Kennedy, President and Chief Executive Officer of Tilray. “In the second quarter, we generated significant revenue growth as a result of our global strategy, our multinational distribution network and our commitment to research, innovation, quality and operational excellence.”
Tilray reported that it sold 1,514 kilograms for the quarter for an increase of 97% over last year’s 745 kilograms sold. The average net selling price per gram increased from $6.20 last year to $6.38 for this quarter. The company said the increase was primarily due to growth in higher potency product and extract sales, partially offset by an increase in wholesale revenues.
The company said that after the underwriting discount, it received $163 million from the IPO and plans to use that money to build out its cultivation and processing capacity, repay outstanding principal and interest under the Privateer Holdings debt facilities, and use the money for future acquisitions and working capital.
During the quarter Tilray signed agreements to supply cannabis to adult-use consumers in seven Canadian provinces and territories including British Columbia, Manitoba, Nova Scotia, Ontario, Quebec, the Yukon Territory and the Northwest Territories. It also entered into a strategic agreement with Sandoz Canada, a division of Novartis, to collaborate on the creation and sale of co-branded and co-developed non-combustible medical cannabis products.
Tilray also inked a deal with Canada’s largest pharmacy chain, Shoppers Drug Mart Inc. to supply them with Tilray products following approval of Shoppers’ application to become a Licensed Producer.It also signed a deal with Pharmasave, which owns 650 pharmacies.