Jan 10 (Reuters) - Tilray Inc on Monday pledged
more cost cuts and reported a surprise quarterly profit as
savings from its reverse merger with Aphria benefited the
Canadian cannabis producer, pushing its shares more than 12%
The company also forecast $20 million more in cost cuts over
the $80 million originally planned from the merger that created
the world's largest cannabis producer by sales in May last year.
Tilray's earnings, the first for the quarter ended November
from a major cannabis producer, could help calm investors
frustrated by slow regulatory progress and a lack of
profitability after years of overspending by Canadian pot
"We will look to expand brands into different categories,
geographies and products and there will be some additional
acquisitions that will compliment some of these brands," Chief
Executive Officer Irwin Simon told Reuters.
Including the combined company's growth, Tilray's revenue
grew 20% to $155 million in the second quarter, but missed
analysts' average estimate of $170.55 million, according to
Refinitiv IBES data.
Simon attributed the miss to market saturation and related
competitive challenges in Canada and said Tilray is responding
to those challenges by adjusting product prices, a strategy he
expects will help the company gain some lost market share.
On U.S. decriminalization of cannabis, Simon said he was
"very much" expecting some form of legalization to take place
last year, adding that "we are just a couple of years away
before anything happens."
Expectations of policy changes, including federal
decriminalization, have raised prospects for the U.S. cannabis
On an adjusted basis, Tilray posted a profit of 3 cents per
share in the second quarter ended Nov. 30, while analysts were
expecting a loss of 9 cents per share.
(Reporting by Rithika Krishna in Bengaluru; Editing by Devika
Syamnath and Shinjini Ganguli)