Tilray reports earnings
Tilray (TLRY) reported its Q1 2019 earnings on May 14 after the market closed. The company reported revenue of $23 million, which was better than the expectation of $20.2 million. The company’s stock popped almost 4% after the earnings, while Aurora Cannabis (ACB), which also reported its earnings yesterday, was trading almost 2.2% lower yesterday. The ETFMG Alternative Harvest ETF (MJ) gained about 2.4%. Sequentially, Tilray’s revenue grew by almost 48% from $15.5 million.
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The revenue mix
Tilray also provided a breakdown of its revenue by mix. Adult-use cannabis sales amounted to $7.8 million, Canadian medical sales amounted to $7.7 million, food products amounted to $5.5 million, and international medical sales amounted to $1.8 million. Interestingly, food products accounted for nearly one-fourth of the company’s revenue and may hint at the direction Tilray is taking with its cannabis sales.
Cannabis companies will offer a variety of products as the quest for newer markets widens. Canopy Growth (WEED) offers products for pets, while HEXO (HEXO) may have plans to launch infused beverages with the backing of Molson Coors.
The company sold a total of 3,012 kilograms of cannabis during the quarter at an average selling price of $5.6 per gram compared to $5.94 per gram in the corresponding quarter a year ago.
During the first quarter, Tilray also reported a better-than-expected gross income of $5.4 million compared to the expected of $5.36 million. Sequentially, the company’s gross margins improved to 23.4% from 20.2% as a percentage of sales. The company, however, added that the gross margins continued to be affected by higher costs related to increased expansion activity in Canada as well as in Portugal.