Tilray shares rose 13.5% after the report on sales growth and expansion plans in Europe
International cannabis producer Tilray on Monday reported a 20% increase in sales revenue. As a result, Tilray (TLRY) shares, which have lost 40.9% over the past year, rose by 13.5%.
Tilray, one of the largest international producers of cannabis and consumer goods, on Monday reported significant improvements in its financial performance, thanks to an increase in demand for products.
Tilray shares, which have lost 40.9% over the past year, were up 13.5% at the close of trading on Monday. Telemar’s market capitalization is $3.4 billion, and the company operates in the markets of Canada, the USA, Europe, Australia, and Latin America.
Last year, Tilray completed a merger deal with Aphria. As a result, the company’s financial performance is improving, and the opportunities to capture a larger share in the markets are growing.
In the second quarter of fiscal 2022, which ended on November 30, Tilray sales increased by about 20% to $155 million. Cannabis sales revenue rose 7% to $58.8 million, SweetWater alcoholic beverage sales revenue totaled $13.7 million, and Manitoba Harvest wellness products revenue totaled $13.8 million.
EBITDA profit (before taxes, depreciation, and interest payments) increased from last year’s value of $10.1 million to $13.8 million. Net profit increased to $6 million compared to a net loss of $89 million in the same quarter of the previous year.
Tilray had a cash balance of $331.8 million at the end of the quarter.
According to Tilray CFO Carl Merton, the synergy from the merger with Aphria will save $80 million by the end of the fiscal year (May 2022) and another $20 million in the next fiscal year.
It is important to note that introducing the improvements will allow us to regain our share when the market improves aggressively.
In Germany — the largest and most profitable medical cannabis market in Europe — we are leading with almost a 20 percent share.” Simon spoke enthusiastically about the opportunities in Europe, in the medical cannabis markets in Germany and Portugal.
A new German government coalition has agreed to legalize the recreational use of cannabis for adults. Would make Germany the world’s largest legal federal market, said Denise Faltisek, Tilray’s head of international business, and the rest of Europe would eventually follow suit.
Gilroy’s management informs that it continues to develop new consumer products with cannabis without waiting for federal legalization. In Canada, full legalization took place in October 2018. Over the past few years, 16 US states plus Washington, DC, have legalized recreational cannabis, but full legalization has not yet.
