Tilray Inc. sold nearly five times more pots than last year, according to a quarterly earnings report released Thursday, in part thanks to the acquisition of the world's largest hemp food manufacturer and early returns from selling medical marijuana in Europe.  Tilray
reported a third quarter net loss of $ 35.7 million, or 36 cents per share, versus $ 18.7 million, or 20 cents per share, a year ago . Revenue increased to $ 51.1 million from $ 1
Of total revenues, $ 15.7 million is from hemp products, the result of the acquisition of Manitoba Harvest earlier this year. Tilray sold recreational grass for $ 15.8 million. International sales of medical cannabis increased to $ 5.7 million from $ 949,000 a year ago.
Tilray CEO Brendan Kennedy said in an interview with MarketWatch that he attributes the international cannabis sales to the investments the company made in 2017 and 2018 that are now beginning to bear fruit.
Cannabis Watch: How much worse could it be for underperforming weed companies?
"[International revenue] will definitely increase," he said. “And in Germany we still see demand, we see demand for high quality flowers GMP [good manufacturing practices]. We have proven that we can get product to Germany, it is harder than people understand to get products there, and it is difficult to get a breakthrough there. "
Kennedy said selling in Germany can be a challenge because the country expects products sold to match a narrow range of tetrahydrocannabinol, or THC, a psychoactive compound found in cannabis. THC content declines over time in cannabis plants, Kennedy said, creating a challenge when sending product after promising a certain THC percentage.
Analysts surveyed by FactSet projected a loss of 30 cents per share on sales of $ 49 million. For the fourth quarter, analysts expect a loss of 28 cents per share and sales of $ 57 million. Initially, the Tilray shares gained about 2% in the expanded turnover, and then fell to a loss of 2%.
Tilray sold approximately 10.9 tonnes of cannabis during the quarter, with the average sale price per gram at $ 3.25 from $ 6.21. Adult recreational cannabis sold for an average of $ 2.98 grams.
Like many Canadian public cannabis companies, Tilray has struggled to meet the high expectations of legalization. Kennedy has previously blamed some of Canada's other licensed weed companies, saying they have lied about how much marijuana they can grow. It created problems for Tilray because it had planned to procure marijuana from other companies versus planning to grow all the cannabis it needed.
Kennedy told MarketWatch on Thursday that his views on the Canadian cannabis industry have not changed much from the previous quarter when he said he was "less skeptical" of cannabis supply in Canada. However, he said that when Tilray goes to the market to find high-strength weeds, there is very little available for purchase, despite the fact that a good number of products show up in the balance of Tilray's competitors.
"If we had more access to it, we could sell more of it," Kennedy said.
Lower quality marijuana suitable for recovery is not difficult to obtain, he said.
Tilray said in August that it acquired a cannabis retailer in Alberta for up to $ 110 million ($ 82.9 million) in a share price. Tilray also signed an agreement with a German company to supply USD 3.3 million weed from the Portugal plant.
Tilray shares have slipped this year, falling 70%, as ETFMG Alternative Harvest ETF
fell 23.2% and Horizons Marijuana Life Sciences ETF
falls 27.2%. The S&P 500 benchmark index
SPX, + 0.16%
has received 23%.