Tilray shares rise as pot firm reports higher selling prices
Tilray Inc. shares rose in post-market trading after the company reported revenue that beat estimates, a higher average selling price though a wider-than-expected loss.
The cannabis producer’s fourth-quarter revenue was $15.5 million (U.S.), triple the year-ago period and ahead of the average analyst estimate of $15.1 million, as it sold more pot at higher prices. However, it lost $31 million in the quarter, significantly more than the $3 million lost a year earlier, amid higher operating expenses.
Tilray reported an average net selling price per gram of $7.52, up from $6.21 in the prior quarter and $7.13 a year ago. By comparison, Aurora Cannabis Inc.’s average selling price fell 26 per cent for dried cannabis and 18 per cent for cannabis extracts in the final quarter of the yearCost of sales rose to $12.4 million from $2.2 million a year earlier, the result of higher operating expenses related to growth initiatives, expansion of international teams, and financings and M&A activity, the company said.
Tilray sold 2,053 kilograms of cannabis, up from 1,613 kilograms in the third quarter. Eight Capital analyst Graeme Kreindler estimated that Tilray captured 4 per cent of Canada’s $307 million (Canadian) legal cannabis market in the quarter, but expects that share to increase as new facilities ramp up production. That compares to about 20 per cent for Aurora and an estimated 30 per cent for Canopy Growth Corp.