Tilray revenue hit by lower recreational, medical cannabis sales

Nanaimo, British Columbia-based Tilray halved its net loss to $81.7 million for the second quarter ended June 30, a substantial improvement over the previous quarter’s $184.1 million deficit.

However, the cannabis producer reported lower sequential revenue in most of its important categories.

Tilray reports in U.S. dollars.

Overall revenue for the period was $50.4 million, down 3.2% quarter-over-quarter.

At the same time:

  • Adult-use cannabis sales in Canada fell 15% to $17.6 million.
  • Canadian medical sales fell 5% to $3.8 million.
  • Hemp-related revenue fell 5% to $20.2 million.

Sales of international medical cannabis were the only bright spot for Tilray, rising 43% to $8.3 million.

In May, Tilray became the latest Canadian cannabis producer to bail on a costly greenhouse, saying it will close its High Park Gardens facility in Leamington, Ontario.

That move contributed to an inventory-valuation adjustment of $13.7 million from a write-down of unharvested flower related to the closure of the facility.

Tilray also disclosed a lawsuit involving High Park Holdings, its wholly owned subsidiary, and Zenabis, a Vancouver, British Columbia-based cannabis producer.

Tilray said High Park commenced a confidential arbitration against Zenabis on June 19.

The dispute relates to payments and obligations under a supply agreement between Zenabis and High Park.

High Park is seeking about 24 million Canadian dollars ($18 million) as well as additional unquantified damages and related contractual relief.

Zenabis has indicated it will be defending the claim, according to Tilray.

Earnings details from some publicly traded companies in the cannabis industry are available here.