Tilray, Inc. Reports Second Quarter 2019 Financial ResultsPosted by On


NANAIMO, British Columbia–()–Tilray, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY), a global pioneer in cannabis research, cultivation, production and distribution, today reported financial results for the second quarter ended June 30, 2019. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

“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.”

Second Quarter 2019 Financial Highlights

  • Revenue increased 371.1% to $45.9 (C$60.9) million, compared to the second quarter of last year, 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.

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

2019

 

2018

 

$ Change

 

 

% Change

 

 

2019

 

2018

 

$ Change

 

% Change

 

Adult-use

$

15,041

 

$

 

$

15,041

 

 

N/A

 

 

$

22,922

 

$

 

$

22,922

 

N/A

 

ACMPR (direct to patient & bulk)

 

9,078

 

 

9,267

 

 

(189

)

 

(2

)%

 

 

16,841

 

 

16,645

 

 

196

 

1

%

Food products

 

19,935

 

 

 

 

19,935

 

 

N/A

 

 

 

25,517

 

 

 

 

25,517

 

N/A

 

International – medical

 

1,850

 

 

477

 

 

1,373

 

 

288

 

 

 

3,662

 

 

907

 

 

2,755

 

304

 

Total revenue

$

45,904

 

$

9,744

 

$

36,160

 

 

371

%

 

$

68,942

 

$

17,552

 

$

51,390

 

293

%

Excise tax included in revenue

$

3,862

 

$

 

 

3,862

 

 

N/A

 

 

$

5,776

 

$

 

 

5,776

 

N/A

 

  • Total kilogram equivalents sold more than tripled to 5,588 kilograms from 1,514 kilograms in the prior year period.
  • Average net selling price per gram decreased to $4.61 (C$6.12) compared to $6.38 (C$8.36) in the prior year period. The average net selling price excluding excise taxes was $3.92 (C$5.20) per gram for the second quarter of 2019. 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.
  • Gross margin increased sequentially to 27% from 23% in the prior quarter. Gross margin in the second quarter of 2018 was 43%. Gross margin continues to be impacted by increased costs incurred with the ramping up of cultivation facilities in Canada and Portugal and acquiring third party supply. Food product margins were also impacted by a $1.4 million non-cash charge related to purchase accounting for the fair value of inventory. Excluding this purchase accounting charge, gross margin was 30% for the quarter.
  • Net loss…

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