Canadian cannabis company Tilray reports net losses of $271 million in 2020

Bethan Rose Jenkins, Cannabis News Writer/Editorial

Major Canadian cannabis producer Tilray has published its net losses for 2020. The Nanaimo, British Columbia-based company is proud to announce that its annual losses were cut to $271 million last year. 

Comparatively, Tilray reported net losses of $321 million in 2019. These figures were revealed in the company’s full-year and fourth-quarter results, which were disclosed to the public on Wednesday. February 17. 

The cannabis producer appears to be moving from strength-to-strength, with losses of just $3 million being reported in the fourth quarter concluding on December 31, 2020. Additionally, according to the latest data, Tilray’s adjusted EBITDA was $2.2 million.

An overview of Tilray’s fourth-quarter revenue results 

Based on Tilray’s fourth-quarter revenue results, all of which are reported in U.S. dollars, cash revenue of $261.3 million was recorded as of Feb. 16, 2021. Total revenue climbed to $56.6 million during the quarter – a slight increase from the $51.4 million recorded in the July to September period. 

Of that amount, $41.2 million came from cannabis – almost $10 million more than the $31.4 million recorded in the previous quarter. Conversely, hemp revenue sank 23 percent quarter-over-quarter to $15.3 million.

Specifically, the following three areas saw rapid improvement:

  • Adult-use cannabis sales inflated 27 percent to $25.4 million;
  • Canadian medical cannabis revenue saw a 24 percent uptick to $4.2 million;
  • International medical cannabis revenue soared 44 percent to $11.7 million.

Tilray’s merger with Aphria could further stimulate revenue 

As if Tilray’s fourth-quarter revenue results weren’t impressive enough, things look set to get even better for the cannabis giant. By the time 2021 comes to an end, the Canadian company will merge with cannabis grower Aphria to establish the largest global cannabis producer. The merger will operate under Tilray’s trade name. 

Famous for being the first cannabis company to offer an initial public offering (IPO) on an American stock exchange back in 2018, Tilray is eagerly anticipating the merger with international cannabis producer and distributor Aphria. The merger is set to occur during the second quarter of this year. 

“Scale matters, in both Canada and beyond. The combined company will be the largest global cannabis company based on pro forma revenue, with scale and breadth across geographies and a complete portfolio of market-leading brands in all major cannabis product categories,” said Tilray CEO Brendan Kennedy during a recent conference call with analysts. “We are in the early stages of the continued development and expansion of the global cannabis market.”

Previously, Curaleaf was seen as the most dominant cannabis producer on the planet, with the company setting an annual revenue record of CA$842 million (USD$661 million). Now, with the Tilray-Aphria merger expected to generate annual revenue of CA$874 million (USD$686 million), Curaleaf is preparing to have its thunder stolen.

“The combined company will have a portfolio of carefully curated and complementary brands in every major cannabis category, including flower, pre-roll, oils, capsules, vapes, edibles and beverages and across all consumer segments, economy, value, core, mainstream and premium,” says Kennedy, who is set to become chairman. The role of company CEO is reserved for Aphria CEO Irwin Simon.

Shares of Tilray can be found trading on the NASDAQ under the ticker ‘TLRY’. Traders will also see shares of Aphria on the NASDAQ and Toronto Stock Exchange under the ticker ‘APHA’.