Tilray Inc. (TLRY) Stock Surges Following Announcement of Promising Financial Reports for Fiscal Q4 2021

Tilray Inc. (TLRY) stock prices were up 22.47% as of the market opening on July 28th, 2021, bringing the price per share up to USD$15.69 early on in the trading day.

Net Revenue Breakdown

Net revenue for the fourth quarter of fiscal 2021 was reported at USD$142.2 million, up 25% from the USD$113.5 million reported for the prior year quarter. The increase was largely driven by a 36% increase in net cannabis revenue, which was reported at USD$53.7 million. This included a four wee contribution from legacy-Tilray, a 10% decline in distribution revenue, and a net beverage alcohol revenue of USD$15.9 million as a result of TLRY stock’s acquisition of SweetWater on November 25th 2020. Also contributing to the year-over-year increase was wellness revenue in the amount of USD$5.8 million from Manitoba Harvest.

Income and Adjusted EBITDA

Net income for the 2021 quarter came in at USD$33.6 million, a massive improvement from the net loss of USD$84.3 million reported in the prior year quarter. Adjusted EBITDA was up to USD$12.3 million during the fourth quarter of 2021, representing a massive 285% increase from the USD$3.2 million reported in the prior-year quarter. This marks the ninth consecutive quarter of positive Adjusted EBITDA.

TLRY Stock’s Gross Profits

Gross Profits were down to USD$22.5 million for the quarter, a 19% decrease from the USD$27.8 million reported in the prior-year quarter. Gross profits for the quarter included a one-time inventory valuation adjustment of USD$19.9 million, derived from excess inventory quantities as of the business combination with Aphria. Adjusted gross profit was reported at USD$42.4 million, a 53% increase from the USD$27.8 million reported for Q4 2020.

Ongoing Cost Synergies

TLRY stock anticipates facilitating significant cost synergies amounting to a total of USD$80 million within eighteen months of closing its business combination with Aphria Tilray. These cost synergies are forecasted to be focused in the key areas of cultivation and production, cannabis and product purchasing, sales, and marketing, as well as corporate expenses. So far, the company has achieved USD$35 million in synergies.

Future Outlook for TLRY

Armed with the success of its most recent financial reports for the last quarter of fiscal 2021, TLRY is poised to continue its trajectory of success into the new year. Current and potential investors are hopeful that management will be able to leverage the resources at its disposal to facilitate significant and sustained increases in shareholder value.

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