Tilray, Inc. (Nasdaq: TLRY; TSX: TLRY), reported financial results for the first quarter ended August 31, 2021 yesterday.

Q1 Financial Highlights

The results below compare results with the previous quarter and are presented in USD.

• Net Revenue: +18% to $168M
• Gross Profit: +129% to $51M
• Net Income: $(34.6)M from $22.5M
• Adj. EBITDA: +3.3% to $12.7M$12.3M

Management Commentary

Irwin D. Simon, Tilray’s Chairman, and Chief Executive Officer, stated:

• “Tilray’s first quarter 2022 results affirm that...we are...
  • maximizing near-term profitability through leadership in both higher-margin international medical markets and in Canada, complemented by incremental growth at SweetWater and Manitoba Harvest in the U.S....[and] augmented by the cost benefits of our increased scale that we are realizing through our integration process...[and]
  • capitalizing on the nearly $200 billion global cannabis market opportunity [and] we believe we are ideally-positioned to succeed due to our global consumer-packaged goods expertise and scale, our diverse portfolio of brands, our reputation as a trusted supplier of high-quality cannabis, battle-tested leadership and a relentless focus on driving sustainable shareholder value....”

Q1 Operational Highlights

• completed the acquisition of amended convertible notes in MedMen, a premier retailer in the $80 billion U.S. cannabis market and a potentially transformative step towards Tilray’s objective of leading the U.S. market when legalization allows.
• launched medical cannabis edibles in Canada.
• Tilray’s wholly owned subsidiary, SweetWater Brewing Company, announced the launch of 420 Imperial IPA, the first line extension of its flagship 420 brand.
• SweetWater announced its West Coast expansion including a new Colorado Brewery and the opening of SweetWater Mountain Taphouse at Denver International Airport.
• announced the completion and shipment of the first successful EU GMP-certified medical cannabis harvest grown in Germany for German distribution.
• maintained #1 market share in Canada with leading portfolio of comprehensive medical cannabis and adult-use brands, including top position in cannabis flower and pre-rolls; five Tilray brands rank in top five brands across all adult-use product categories.
• remained the international market leader and #1 in Germany with medical cannabis extracts.
• achieved cost-saving synergies of $55 million on a run-rate basis to date, with actual cash-savings close to $20 million.

Forward Expectations

• to continue growing and strengthening its position as the #1 Canadian LP in total sales on a consolidated basis and to leverage its position, brands and new product innovation to expand its current cannabis retail market share in Canada of approximately 16% to its goal of 30% share by the end of fiscal year 2024.
• to achieve at least $80 million in cost-savings from Aphria and Tilray business combination synergies.
• to unlock new opportunities across global geographies at a faster pace than competitors based on leadership, partnerships and operational scale.
• to deliver on its objective of leading the U.S. cannabis market upon federal legalization.

Stock Performance

Tilray's stock has declined 21.8% since the end of Q4 2021 (May '21), and is now only up +27.0% YTD.