Tilray Inc. reported a wider first-quarter loss in the face of revenue headwinds and the impact of unfavorable currency conversions to U.S. dollars, but CEO Irwin Simon said the cannabis company retained its leading market positions in Germany and Canada and that it still holds about $500 million in cash. “We have a good plan in place. We have a strong balance sheet and a diversified product portfolio and we’re in a good place,” Simon said.
However, investors bid Tilray
shares down 18% on Friday as the company’s stock continues to follow a well-worn path into the red. All told, the stock is down about 55% in 2022, compared with a 63% loss by the Cannabis ETF
During the quarter, Tilray faced cannabis price compression in the Canadian market. It also had to stop deliveries for about 10 business days due to strikes in British Columbia and Quebec. Tilray said its first-quarter loss widened to $65.8 million, or 13 cents a share, from a loss of $34.6 million, or 9 cents a share, in the year-ago quarter. Revenue at the cannabis company fell 9% to $153.2 million. See also: Cannabis stocks cool off after previous day’s rally as optimism around rescheduling fades Analysts expected Tilray to lose 7 cents a share on revenue of $155.9 million, according to FactSet data. Excluding negative currency impact, Tilray’s revenue would have been about $166.5 million. Gross margins increased from 51% to 43% in the prior year’s quarter. The company also reported cash savings from its acquisition of Aphria and the second-richest adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) in its history, Simon said. Breaking out currency losses and amortization costs erases the …