Cannabis producer Tilray became the latest Canadian marijuana company to report earnings well below market expectations.
The British Columbia-based company reported a net loss of $219 million for the quarter ending Dec. 31, worse than the previous period’s net loss of $35 million.
Total revenue fell 8% to $47 million compared to the previous quarter, missing analyst estimates.
Tilray’s adjusted EBITDA loss of $35.3 million was 33% lower than the previous quarter.
The company attributed worsening net loss and adjusted EBITDA to increases in operating expenses, international expansion and the addition of Manitoba Harvest and Natura Naturals businesses.
Bulk cannabis sales fell 60% from the period ending Sept. 30 to $4 million in the quarter ending Dec. 31.
Tilray’s international revenue from medical cannabis fell 30% quarter-over-quarter to $4 million.
For the year, adjusted EBITDA was a loss of $90 million versus a loss of $28 million in 2018.
The company still aims to be EBITDA-positive by the fourth quarter of 2020.
Other highlights from Tilray’s call include:
- Medical cannabis sales in Canada – once the backbone of the company – declined 14% quarter-over-quarter to $3.3 million.
- Cannabis kilogram equivalents sold increased 39% to 15,039 kilograms (33,155 pounds) from the third quarter.
- Adult-use cannabis revenue grew a modest 7% over the previous quarter to $17 million.
- Hemp-related revenues for the quarter ending Dec. 31 rose slightly to $18.7 million.
Tilray trades as TLRY on the Nasdaq.