Tilray losses expand as pandemic pot sales disappoint, stock falls 7%

Tilray Inc.'s cannabis sales did not grow as much as expected in the first full quarter of the COVID-19 pandemic, sending shares lower in after-hours trading Monday. The marijuana company Monday afternoon reported losses of $81.7 million, or 66 cents a share, on sales of $50.4 million, after posting a loss of 36 cents a share a year ago on revenue of $45.9 million. Analysts on average expected a loss of 32 cents a share on sales of $54.8 million. In its announcement, Tilray said that expanding losses were largely due to an impairment charge of $28.4 million and a revaluation of its inventory assets that cost it $18.6 million. Revenue declined sequentially, which management blamed on "pantry loading" in the final month of the previous quarter due to the pandemic, as well as issues with store closures and other changes in the retail channels. "With our significant cost cutting and balance sheet actions behind us, we have positioned Tilray to enter the second half of 2020 in a stronger position so we can remain focused on achieving profitable growth in all our markets and deliver break-even or positive Adjusted EBITDA in the fourth quarter of 2020," Chief Executive Brendan Kennedy said in Monday's announcement. Tilray shares dropped 7% in after-hours trading immediately following the release of the results. The stock has declined 53.5% so far this year, as the S&P 500 index has gained 4.9%.

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