Tilray says the coronavirus has not significantly affected its ability to sell marijuana

The British Columbia-based cannabis company reported a net loss of $ 184.1 million in the first quarter, amounting to $ 1.73 per share, compared to a loss of $ 29.4 million, or 31 cents a share, a year ago. The company's higher than expected losses resulted from non-monetary changes in the value of its warrants, an impairment charge of $ 29.8 million and $ 28.1 million. currency expense dollars due to the relative weakness of the Canadian dollar. .

On Monday, when calling the company's results, CFO Michael Kruteck said the $ 28.9 million impairment charge was the result of regulatory uncertainty related to its agreement on the cannabidiol or CBD with Authentic Brands Group in the United States. . While the United States has legalized hemp, the Food and Drug Administration has declared that foods and beverages containing CBD, among others, are under its jurisdiction.

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Tilray's revenues increased 126% to $ 52.1 million from $ 7.9 million a year ago, and the company said it paid $ 5 million in excise duties, which many packaged consumer goods companies have gross revenues. Tilray revenues increased 11% from the fourth quarter.

In the call for results, Kruteck said that, like many cannabis operators, Tilray saw an increase in sales in March as people stored cannabis before ordering to stay at home in Canada. Krutek also said sales slowed in April, but to a higher level than in January and February.

The company sold $ 5.8 million of medical marijuana abroad, which was higher than medical sales in Canada for the first time. "International medicine will never come back," said managing director Brendan Kennedy during the call for results. "It will always exceed our Canadian medical revenues."

In Canada, Tilray sold $ 20.9 million in recreational cannabis and $ 4.1 million in medical marijuana. Manitoba Harvest, its hemp-based food unit, reported sales of $ 21.3 million.

Analysts polled by FactSet expected a loss of 44 cents a share on sales of $ 49.4 million.

In a statement, Kennedy said the company had predicted that it would make a profit using a non-standard profitability measure. He also said the company has taken several steps to make its operations more efficient, which should save it $ 40 million a year, although the measures are not "fully reflected" in the results of the trimester.

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Tilray said the average net selling price of cannabis per gram has dropped to $ 5.28 from $ 5.60 a year ago; Excluding excise duty, the price was $ 3.49 per gram.

To date, Tilray has stated that it has had no material impact from the coronavirus related to its sales of medical cannabis, its sales of recreational marijuana in Canada, or its Manitoba Harvest hemp products. In Canada, cannabis companies have been allowed to continue operating, although additional security measures are required.

"Some of our shipments [were] delayed here and there for a few days," said Kennedy on the call. "Overall, we did not see any significant distribution issues related to COVID-19 in Canada or abroad during the first quarter and throughout April and from the first part of May. "

In March, Tilray sold $ 90.4 million worth of shares at $ 4.76 per share, less than a third of what was listed on the IPO. Tilray was listed on Nasdaq at $ 17 per share in 2018, months before Canadian legalization of recreational marijuana use, and at one point, his actions briefly touched $ 300 in intraday trading. Tilray raised funds in March as Dow Jones Industrial Average
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