Canada-based cannabis and alcohol company Tilray Brands reported a second-quarter net loss of $61.6 million ($82.4 million Canadian dollars) on net revenue of $144.1 million.
That $144.1 million net revenue figure for the quarter ended Nov. 30 represents a roughly 6% decline from the $153.2 million in net revenue reported during the previous quarter. (Tilray reports its financial results in U.S. dollars.)
Canadian adult-use cannabis net revenue was $52.4 million before adjusting for excise taxes, a decline of about 10% from the previous quarter.
On a Monday morning call with investors and analysts, Tilray CEO Irwin Simon said the company’s Canadian adult-use cannabis business maintained leading market share in Canada’s marijuana market, at 8.3%.
Simon said the company’s Canadian division has a plan involving “new innovation, new distribution, taking (market) share, and potentially other acquisitions in the Canadian market” to achieve a “double-digit share.”
Asked by an equities analyst to expand on plans for Canadian merger and acquisition opportunities, Simon said any such acquisitions would have to “fit within our grow facilities, and it’s got to be accretive to Tilray and Tilray shareholders.”
“We’re very interested,” he said.
Simon added that although Tilray doesn’t anticipate U.S. federal cannabis legalization in the near future, “we very much like (the) beer and spirits business …
Tilray is also interested in acquisitions in the wellness space, Simon said.
Quarterly Canadian medical cannabis revenue was $6.4 million before adjusting for excise taxes, and international cannabis revenue was $7.7 million.
Distribution revenue through Tilray’s CC Pharma business in Germany was Tilray’s biggest revenue contributor, totaling $60.2 million, down slightly from the previous quarter.
Quarterly beverage alcohol revenue was $21.4 million, growing from $20.7 million in the previous quarter after Tilray’s November acquisition of the Montauk Brewing Co. in New York.
Using a constant currency basis to account for exchange-rate fluctuations, Tilray said its quarterly net revenue would have been $157.6 million.
Chief Financial Officer Carl Merton said Tilray’s results “are being impacted by the strength of the U.S. dollar, particularly given our largest revenue sources’ currencies are the Euro and the Canadian dollar.”
Ontario- and New York-headquartered Tilray reported $433.5 million in cash and marketable securities at the end of the quarter.
Solomon Israel can be reached at email@example.com.