TILT Holdings Inc. (NEO:TILT) (OTCQX: TLLTF) reported its financial results for the three months ending September 30, 2021 with revenue increasing 37% to $53.4 million driven by growth in both cannabis and inhalation and accessory revenue. Cannabis revenue increased 19% to $11.2 million and inhalation and accessory revenue increased 42% to $42.1 million. The net loss increased sequentially to $7.1 million from the second quarter’s $3.9 million and was higher than last year’s net loss of $4.6 million.
“TILT’s B2B strategy originated from our belief that the rising supply of wholesale cannabis in multiple markets across the U.S. would require a differentiated approach, shifting away from bulk flower sales towards branded packaged goods,” said Gary Santo, CEO of TILT. “When we launched our strategy at the start of the year, we envisioned that marketplace transition would take 12 to 18 months as new cultivation came online. In the third quarter, we saw that timeline accelerate along with macro-economic pressure impacting consumers.”
“Competition for shelf space is accelerating. Compressing margins are forcing MSOs and SSOs to focus on their own branded products while still maintaining a portion of that shelf space for a curated portfolio of high-demand third-party products. This is the space where TILT plays, and although we are still early in scaling our operations to meet brand partner demand, our top-line performance during the quarter demonstrates that by establishing partnerships with the right brands at the right price points, TILT can support retailers while expanding the reach of independent brands.”
The total operating expenses were $16.3 million versus $14.5 million. At September 30, 2021, cash and cash equivalents were $6.7 million compared to $7.4 million at December 31, 2020.