NEW YORK- After Canadian cannabis company Tilray Brands Inc. TLRY, +1.09% said it had lost money in the second quarter, its stock fell 3.7% in premarket trading on Monday.
In contrast to a profit of $5.8 million, or breakeven per share, for same time last year, Tilray recorded a loss of $61.64 million, or 11 cents per share, for the second quarter.
The adjusted loss was 6 cents per share, in line with the analysts’ forecasts. The second quarter’s net revenue for the business dropped from $155.15 million to $144.14 million. On a constant currency basis, net revenue in the most recent quarter totaled $157.6 million.
Analysts predicted $154.8 million in revenue.
Simon mentioned the absence of congressional action on American legalization as the reason for this poor performance.
Tilray’s U.S. distribution network remains mainly inactive because Congress allowed cannabis to remain federally illegal.
During the call, Simon stated that there were food shortages worldwide for lettuce, tomatoes, and strawberries. How can we start growing fruits and vegetables at some of these facilities if we have excess capacity so that we can feed everyone on the planet?
Simon emphasized that such a change would only be temporary and that Tilray’s main focus would remain on the global cannabis market. The business is already well-established in Canada and Europe.
After the earnings call, Simon also told Bloomberg that once the U.S. and more European nations fully legalize cannabis, any production facilities that are converted to use for produce growth might be converted back to use for cannabis growing.
Tilray now owns three alcoholic beverage producers, including SweetWater Brewing Co. and Breckenridge Distillery, in addition to Montauk beer, and it is considering other acquisitions in the hemp sector to increase the reach of its hemp-based food items.
In addition, Simon stated that Tilray is seeking to grow share in those markets as it waits for lawmakers to take action on legalizing cannabis at the national level. (Full Story)