Tilray Surges On Reporting First Results Since Merger With Rival Aphria, Reveals $33.6M Profit In Q4

Canadian cannabis giant Tilray, Inc. TLRY TLRY posted its latest financial earnings report Wednesday, touting a spike in both fourth quarter and full fiscal 2021 revenue and a proclamation from CEO Irwin D. Simon that Tilray is "leading the global cannabis industry with low cost of production, leading brands, a well-developed distribution network, and unique partnerships."

Based in New York and Leamington, Ontario, Tilray reported the fourth quarter 2021 revenue increase of 25% to $142.2 million from $113.5 million in the prior-year quarter. Net cannabis revenue totaled $53.7 million, representing a 36% growth.

Net revenue grew by 27% to $513.1 million during 2021, from $405.3 million in 2020, driven mainly by a 55% growth in net cannabis revenue, which amounted to $201.4 million.

The company highlighted that the financial results include a full quarter of the old Aphria (through May) and one month of the old Tilray. The two Canadian cannabis companies merged in May, after months of negotiations.

Click here to listen to Irwin Simon, CEO of Tilray ($TLRY) Interview on Benzinga Cannabis Hour Podcast.

The resulting company is expected to generate roughly $80 million in annual pre-tax cost synergies within the next eighteen months in the key areas of cultivation and production, cannabis and product purchasing, sales and marketing and corporate expenses.

"In a very short period of time 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," Simon explained.

See also: How to Buy Tilray Here (ACB) Stock 

Here's A Q4 Summary:

• Net income totaled $33.6 million versus a net loss of $84.3 million in the prior year quarter.
• Adjusted EBITDA came in positive at $12.3 million, representing an increase of 285% from $3.2 million in the prior-year quarter, marking the ninth consecutive quarter of positive Adjusted EBITDA.
• Gross profit dropped by 19% to $22.5 million.
• Free cash flow rose by 112%  from the prior year quarter to $3.3 million.

Here's A Full-Year Summary:

• Net loss of $336 million in 2021, versus $100.8 million net loss in 2020.
• Adjusted EBITDA was a gain of $40.8 million in 2021, increasing by 598% year-over-year from $5.8 million in 2020.
• Gross profit spiked 28% to $123.2 million during 2021 from $96.1 million in the year before
• Ended 2021 with $488.5 million in cash and cash equivalents.

Tilray's Recent Moves

Earlier this month, SweetWater Brewing Company which was Initially purchased by Aphria in November in a $300 million deal only to end up under Tilray's helm, announced the opening of a new, full-service brewery, production facility, taproom, and restaurant in Colorado, just months following its debut there.

Shortly after, the Atlanta-based company launched a new brew under its flagship 420 brand.

It's the second brew that Tilray's SweetWater Brewing Company launched over the past month following the introduction of its first Canadian craft cannabis brew Broken Coast BC Lager, in the U.S. in collaboration with Canada's Broken Coast Cannabis Ltd.

The company also completed the shipment of the first successful EU GMP-certified medical cannabis harvest grown in Germany for German distribution.

Cantor Fitzgerald's Pablo Zuanic kept an 'Overweight' rating on Tilray's stock while lowering the price target to $19 from $24 earlier this week.

The analyst also listed several possible catalysts from the financial report, including domestic recreational outlook, U.S. plans, overseas growth commentary and dealing with the convertible debt.

The Price Action

Tilray's shares were trading 11.70% higher at $14.22 per share, at the time of writing.

Photo: Courtesy of Benjamin Brunner on Unsplash