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Tilray Eyes Further Consolidation In Canada’s Cannabis Market

October 12, 2021

Leamington, Ontario-based Tilray, now the largest cannabis company worldwide following its merger with Aphria, posted net revenue of $168 million for its fiscal first quarter ended in August. The figure represents a 43% increase from the same period last year, when net revenue totaled $117.5 million, and an 18% improvement from the quarter directly prior.

It was a busy period for Tilray. In the three months the company launched new brand Symbios, added multiple new releases from Sweetwater Brewing in the U.S. as well as announced the brewery’s expansion to Colorado, and introduced a range of new products including medical edibles and Riff pre-roll multipacks. Tilray said it maintained its No.-1 market share position in Canada while continuing to streamline operations, which has generated $55 million in cost saving synergies to date. The company logged a net loss of $34.6 million during the quarter but achieved positive adjusted EBITDA of $12.7 million, marking 10 straight quarters of underlying profitability.

Tilray CEO Irwin Simon said the company is “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.” But he noted that to attain Tilray’s goal of a 30% market share in Canada—up from its current 16%—the company may need to make further acquisitions looking ahead. “There’s got to be some more consolidation,” he told analysts. “Yes, Tilray would be open for other acquisitions in the Canadian market if it made sense.”—Danny Sullivan

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