Tilray makes profit in last quarter, pushing stock up 5.9%

Shares of Canadian cannabis company Tilray Inc. TLRY,
rose 5.9% in premarket trading Wednesday after it made a profit in the fiscal fourth quarter. Tilray said it had net income of $33.5 million in the quarter to May 31, or 18 cents per share, after a loss of $84.3 million, or 39 cents per share, in the prior period. Revenue rose to $142.2 million from $113.5 million a year ago. The FactSet consensus was for a loss of 12 cents per share and revenue of $199 million. Sales were boosted by a 36% growth in cannabis revenue to $53.7 million, including a four-week contribution from legacy Tilray, a 10% drop in distribution revenue, a net alcoholic beverage revenue of $ 15.9 million after its acquisition of SweetWater on Nov. 25, 2020, and wellness revenues of $5.8 million from Manitoba Harvest, the company said in a statement. The company remained loss-making for the year, posting a loss of $336 million, ahead of the $100.8 million loss recorded in fiscal year 2020. The loss was caused by $63.6 million in transaction costs, following the Aphria merger, and $170.5 million in non-cash unrealized loss on convertible bonds. The company has achieved $35 million in synergies on the Aphria deal and expects to reach its target of approximately $80 million within 18 months of closing. US-listed stocks are up 54% so far, while the Cannabis ETF THCX,
gained 17% to match the S&P 500’s SPX,
to earn.