Article by Vanmala Subramaniam, Growth Op
Canadian licensed cannabis producer Tilray Inc. on Tuesday reported that its third-quarter loss had doubled despite rising sales, an outcome driven by a sharp increase in operating expenses related to the company’s international businesses and an expansion into the hemp industry.
The Nanaimo, B.C.-based company posted a net loss of US$35.7 million for the quarter ending Sept. 30, up from US$18.7 million a year ago. Revenue increased by approximately $12 million to $67.8 million for the quarter, boosted primarily by sales in the medical market and revenue from its acquisition of Manitoba Harvest earlier this year.
Sales to the domestic adult-use market represented just 30 per cent of Tilray’s total revenue for the quarter, a decline of two per cent from the second quarter.
The company sold 10,848 kilogram-equivalent of cannabis, almost double the amount it sold in the prior quarter but took a hit on average net selling price per gram, which plummeted 30 per cent to just $3.25.