Tilray TLRY is making bold moves to secure a profitable future, and its latest acquisition of HEXO Corp. HEXO has solidified its position as Canada's top cannabis company with a 44% market share boost, expanding its market share by 467 basis points.
Despite a challenging market, the strategic combination of Tilray and HEXO is expected to drive revenue growth and create significant opportunities for increased margins and earnings, with projected annualized cost savings of over $27 million, in addition to Tilray's existing annualized cash cost savings of $122 million from the Tilray-Aphria transaction.
See Also: Tilray CFO Engages Shareholders On Reddit, Addresses Concerns And Company's Growth Strategy
Tilray CEO Irwin D. Simon expects HEXO to boost Tilray’s "competitive positioning."
"Having already established ourselves as the (...) lowest-cost production as well as industry-leading extraction capabilities (...) we expect to deliver revenue growth, margin contribution, and value creation for shareholders," he said.
“We are relentlessly focused on growing market share strategically and winning in Canada and will leverage this acquisition to expand our consumer base, serve new segments (...) We intend to capitalize on the commercial and financial benefits that are inherent in combining HEXO with Tilray. These include accelerating the optimization of our operations, sales, and marketing efforts (…)” added Blair MacNeil, President, of Tilray Canada.
The deal also establishes a robust portfolio of high-growth brands and enables cost savings of about $27 million.
- Creates Canada’s largest cannabis company by revenue and increases Tilray’s leading cannabis share by 44% with ~13% pro forma market share
- Accelerates the realization of operating and cost synergies above $27 Million
Solidifies Tilray’s position as the leader in cannabis operations in Canada
Related News: HEXO Q3 FY23 Revenue Declines 11% QoQ And 53% YoY, Here Are The Details
Photo by Sam Doucette on Unsplash.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!