Tilray Inc (NASDAQ:TLRY) reported weaker-than-expected earnings for its second quarter, while sales exceeded estimates.
Revenue increased 371.1% to $45.9 million, compared to the second quarter of last year, driven by the Manitoba Harvest acquisition, the legalization of the Canadian adult-use market, and growth in international medical markets, particularly in Europe. Excluding excise tax, revenue was $42.0 million.
Gross margin increased sequentially to 27% from 23% in the prior quarter. Gross margin in the second quarter of 2018 was 43%.
Net loss for the quarter was $35.1 million or $0.36 per share compared to a loss of $12.8 million or $0.17 per share for the prior year period.
The adjusted net loss for the quarter was $31.2 million or $0.32 per share for the second quarter of 2019.
Total kilogram equivalents sold more than tripled to 5,588 kilograms from 1,514 kilograms in the prior year period.
Said CEO Brendan Kennedy, "We are pleased with our second quarter results and strong business momentum. Our team has executed against our plan, with adult-use revenue nearly doubling in the second quarter compared to the first quarter and gross margin increasing sequentially for the second quarter in a row.
"As we continue to grow, we remain focused on our long-term strategic objectives and deploying capital to maximize stockholder value."
Also, recently, the company signed a Letter of Intent (LOI) with Privateer Holdings, Inc. to extend lock-up for up to two years and provide for orderly release of the 75 million Tilray shares held by Privateer.
Shares slid $5.70, or 12.4%, to $40.32
