Cannabis at Tilray’s factory in Cantanhede, Portugal.
Patricia De Melo Moreira/AFP/Getty Images
Stock of Canadian cannabis retailer Tilray closed higher on Thursday despite the company reporting deeper losses in the fiscal first quarter.
The CBD seller experienced gains in net revenue and delivered promising forward-looking guidance, which helped offset a net loss of $34.6 million, up from $21.7 million over the same period last year.
Tilray, which sells cannabis oil drops and vape pens, generated $168 million in net revenue in the quarter, a 43% climb up from $117.5 million. Its stock closed up 2.1%, at $11.02.
Its recent merger with Aphria, a medicinal and recreational cannabis company, helped Tilray achieve $55 million in cost savings to date. It’s on track for at least $80 million in cost savings.
The company experienced growth despite the continued impact of Covid-19 in Canada as retail cannabis stores only began opening in mid-June, said Tilray CEO Irwin Simon.
In addition, foot traffic at Canadian dispensaries has been slower than anticipated, according to a Thursday report from Cowen analysts. “While market recovery has been slower than hoped, cost savings are coming in slightly ahead of plan,” they wrote.
Shares of Tilray have advanced 33% year to date, even as the Cannabis exchange-traded fund (THCX) has fallen 0.2%. The S&P 500 and the Dow Jones Industrial Average are up 17% and 14%, over the same period, respectively.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com
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