Canadian pharmaceutical and cannabis company Tilray has released its financial results for the fiscal year that ended on May 31. Founded in 2014, the company recently reported an annual loss of USD $336 million (CA $422 million).

According to Tilray, these losses reflect transaction costs of the company’s reverse-merger with Aphria on the acquisition of Atlanta-based SweetWater Brewing Co. The heavy investment closed May 3 and saw the two companies join forces to establish the world’s largest cannabis company, which is valued at $3.8 billion.

In addition to this, Tilray’s $336 million annual loss has been attributed to $170 million unfulfilled loss on convertible debentures.

Tilray’s financial results: Net revenue soared 16 percent

Continuing the report into Tilray’s financial results, net revenue rose 16 percent on a quarterly basis. From the previous three-month period, net revenue climbed to $142 million — substantial growth that assisted the company in recording net income to the amount of $33.6 million. 

On the other hand, Tilray’s cannabis sales ($53.7 million) accounted for just 38 percent of total net revenue. Aside from cannabis, the British Columbia-based company’s revenue comprised of the following:

• Wellness ($5.8 million or four percent of sales)
• Beverage alcohol ($16 million or 11 percent of sales)
• Distribution ($66.7 million or 47 percent of sales.)

Based on the company’s adjusted EBITDA, the fourth quarter profited $12.3 million. Unfortunately, the company’s CC Pharma subsidiary in Germany – which accounts for Tilray’s distribution revenue – reduced from the previous quarter.

Due to flooding incidents that occured in Germany for three days this past July, the company endures a blow to the amount of $4 million. Furthermore, free cash flow soared to $3.3 million

Tilray’s financial results: CEO foresees sales topping $4 billion by end of 2024

During a recent conference call with analysts, Tilray CEO Irwin Simon discussed the company’s financial results in more depth. He said that Tilray intends on earning $4 billion in sales by the end of 2024. Included in the forecast are anticipated sales of up to $1.5 billion in the United States. 

According to Irwin, there are two routes that the company will likely take to expand operations into the U.S. Those industries are food and alcohol — two of the most lucrative mainstream industries. He says that both industries could be used to harness the money-making power of THC and CBD once federal legalization occurs across the U.S.

“Alongside that, (Tilray) would be looking at optionality and investments in (multi-state operators) that make sense, that strategically align with Tilray, and look to acquire or merge with them 100 percent once legalization does happen,” Simon said, adding that his company must maintain flexible business practices in order to remain competitive against small-scale cannabis producers.

“We have to remain nimble, flexible and entrepreneurial. If not, a lot of the little guys will nibble at us,” he continued.

Shares of Tilray can be found trading on the Nasdaq under the ticker “TLRY“.