Tilray Inc. reported a wider first-quarter loss in the face of revenue headwinds and the impact of unfavorable currency conversions to U.S. dollars, but CEO Irwin Simon said the cannabis company retained its leading market positions in Germany and Canada and that it still holds about $500 million in cash.
“We have a good plan in place. We have a strong balance sheet and a diversified product portfolio and we’re in a good place,” Simon said.
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During the quarter, Tilray faced cannabis price compression in the Canadian market. It also had to stop deliveries for about 10 business days due to strikes in British Columbia and Quebec.
Tilray said its first-quarter loss widened to $65.8 million, or 13 cents a share, from a loss of $34.6 million, or 9 cents a share, in the year-ago quarter. Revenue at the cannabis company fell 9% to $153.2 million.
Analysts expected Tilray to lose 7 cents a share on revenue of $155.9 million, according to FactSet data.
Excluding negative currency impact, Tilray’s revenue would have been about $166.5 million.
Gross margins increased from 51% to 43% in the prior year’s quarter. The company also reported cash savings from its acquisition of Aphria and the second-richest adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) in its history, Simon said.
Breaking out currency losses and amortization costs erases the company’s net loss, he said.
“We’re sitting today on $500 million of cash,” Simon said. “If you look at our free cash flow and balance sheet, we have plenty of cash to pay down debt. We’re one of the few that doesn’t have to raise cash.”
Tilray also retained its leading market share in Canada and Germany, he said.