As Digital Journal reported on March 17, investors were waiting for Tilray’s fourth-quarter earnings with great anticipation, and the British Columbia-based company had a lot to prove. according to Market Watch.
On Monday, at the close of the market, Tilray reported fourth-quarter revenue of $15.5 million, buoyed 2018 sales to $43.1 million — up 110 percent from last year. Earnings at the end of the quarter ending in December were pegged at a net loss of 33 cents per share, compared to a 4 cents per share profit from the same period in 2017.
Tilray CEO Brendan Kennedy told investors on a conference call late Monday that the surge in revenue was due to bulk sales during the first months after cannabis was legalized in Canada, and accelerated wholesale exports. Analysts had anticipated fourth-quarter sales of $14.1 million.
“Our team made significant progress on our long-term initiatives including increasing production capacity, expanding and strengthening strategic partnerships and acquiring complementary businesses to accelerate our future growth and leadership position in medical and adult-use cannabis,” Kennedy said, reports the Investor’s Business Daily.
“We believe that the field of battle has changed and the U.S. and Europe are going to be more important in the long term,” Kennedy said, adding those markets were “orders of magnitude” bigger than Canada’s.
Tilray also argues that Canada will soon see oversupply – but it will be an insignificant market compared to the opportunities in the EU and US. Business Insider reports that Tilray may be putting itself at risk by focusing on international expansion while dismissing Canada.
