Global cannabis consumer-focused package goods, lifestyle and medical use provider Tilray Inc. (TLRY:NASDAQ; TLRY:TSX) today announced financial results for its fourth quarter and full year 2021 ended May 31, 2021. The company stated that the data reported is inclusive of legacy-Aphria's FY/21 financial results and four weeks of the new combined Tilray.
The company's Chairman and CEO Irwin D. Simon commented, "While the global cannabis market remains in its early stages, our vision, scale, access to resources and operational excellence position us optimally to capitalize on the opportunity...since our business combination was finalized, we transformed and strengthened Tilray, delivered solid results amid continued COVID-19 lockdowns and restrictions and achieved $35 million in synergies to date – well on our way to delivering $80 million in cost savings over the next 16 months."
"Tilray is now truly leading the global cannabis industry with low cost of production, leading brands, a well-developed distribution network, and unique partnerships that we believe will drive sustainable shareholder value in the quarters to come," Simon added.
The company reported that during Q4/21, net revenue increased by 25% to $142.2 million, compared to $113.5 in Q4/20. The firm noted that the increase was primarily driven by a 36% growth in net cannabis revenue to $53.7 million.
Tilray advised that for Q4/21, it posted net income of $33.6 million, versus a net loss of $84.3 million in Q4/20 and that during the same corresponding period it achieved a 285% increase in adjusted EBITDA to $12.3 million, compared to adjusted EBITDA of $3.2 million in Q4/20.
For FY/21, the company indicated that net revenue grew 27% to $513.1 million, up from $405.3 million for FY/20. Tilray attributed the bulk of the growth in FY/21 to a 55% increase in net cannabis revenue to $201.4 million and a 1% growth in distribution revenue to $277.3 million along with net beverage alcohol revenue of $28.6 million from its SweetWater acquisition and wellness revenue of $5.8 million from the Manitoba Harvest transaction.
The company stated it recorded a net loss of $336.0 million in FY/21 compared to net loss of $100.8 million in FY/20. The firm explained that the increased net loss was the result of $63.6 million in acquisition transaction costs and a non-cash unrealized loss $170.5 million on its convertible debentures. Tilray advised that adjusted EBITDA rose 598% to $40.8 million in FY/21, compared with $5.8 million in FY/20.
The company stated that it made progress on its cost-saving efforts and ended FY/21 with a strong cash position of $488.5 million on its balance sheet. In particular, Tilray said it anticipates that it will benefit from cost synergies resulting from the Aphria merger totaling around $80 million over a period of 18 months and added that so far combined operations of the two firms have reduced costs by $35 million.
Tilray noted that "it has been gaining market share nationally in Canada month-over-month since April 2021."
The company highlighted that SweetWater Brewing Company, its 100% owned subsidiary and 11th largest craft brewing company in the U.S., successfully launched 420 Imperial IPA, an extension of it 420 brand, in April 2021. Sweetwater also continued its westward expansion with a new Colorado Brewery and the opening of the SweetWater Mountain Taphouse located within the airport terminal at Denver International.
The firm additionally advised that it completed its first shipment of EU GMP-certified medical cannabis harvest, which was grown in Germany specifically for distribution in Germany. Tilray added that it also rolled out a new medical cannabis brand named Symbios across Canada in June 2021 with the objective of delivering a wider range of medical cannabis choices and cannabinoid concentrations at better price points to patients.
Tilray is headquartered in Nanaimo, B.C., and is a cannabis-lifestyle and consumer packaged goods firm that operates in the U.S., Europe, Australia, Latin America and Canada. The firm listed that its research, cultivation, production and packaging activities currently support more than 20 brands in greater than 20 countries. The company's products include cannabis offerings and infused products, alcoholic beverages and hemp-based foods.
Tilray began the day with a market cap of around $5.7 billion with approximately 449.2 million shares outstanding and a short interest of about 7.1%. TLTY shares opened 12% higher today at $14.27 (+$1.54, +12.10%) over yesterday's $12.73 closing price. The stock has traded today between $14.02 and $16.49 per share and closed for trading at $16.00 (+$3.27, +25.69%).
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