Tilray Brands Inc TLRY

From. Bloomberg Canada Cannabis. January 8/22

[mystique1]

Analyst Call of the Week - What to expect when you're expecting Tilray's Q2

Canadian cannabis giant Tilray reports its fiscal second quarter results before markets open on Monday. Analysts expect the company to report US$164 million in revenue - an annual jump of 191 per cent - and US$11.3 million in adjusted EBITDA. However, Tilray's sales gains don't reflect the market share declines that the company has experienced, which may now hover at around nine per cent in Canada's largest provinces, according to BMO Capital Markets Analyst Tamy Chen.

She believes Tilray lost share to other players due to a combination of smaller producers supplying more premium flower to the market and deep discounting in the bulk segment. Alliance Global Partners also highlights how the resurgence of COVID and return of lockdowns in Ontario will likely see Tilray's market share fall even lower beyond its fiscal second quarter, according to Hifyre sales data. 

Cantor Fitzgerald's Pablo Zuanic points out that less than half of Tilray's revenue (42 per cent) is derived from its cannabis operations, and sees industry data showing the company's recreational pot sales down 16 per cent from its first quarter. Despite that, he expects Tilray's gross margins to remain stable or even up slightly in its second quarter.

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Analyst Call of the Week - What to expect when you're expecting Tilray's Q2

Canadian cannabis giant Tilray reports its fiscal second quarter results before markets open on Monday. Analysts expect the company to report US$164 million in revenue - an annual jump of 191 per cent - and US$11.3 million in adjusted EBITDA. However, Tilray's sales gains don't reflect the market share declines that the company has experienced, which may now hover at around nine per cent in Canada's largest provinces, according to BMO Capital Markets Analyst Tamy Chen.

She believes Tilray lost share to other players due to a combination of smaller producers supplying more premium flower to the market and deep discounting in the bulk segment. Alliance Global Partners also highlights how the resurgence of COVID and return of lockdowns in Ontario will likely see Tilray's market share fall even lower beyond its fiscal second quarter, according to Hifyre sales data. 

Cantor Fitzgerald's Pablo Zuanic points out that less than half of Tilray's revenue (42 per cent) is derived from its cannabis operations, and sees industry data showing the company's recreational pot sales down 16 per cent from its first quarter. Despite that, he expects Tilray's gross margins to remain stable or even up slightly in its second quarter.
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