British Columbia, Canada-based Tilray sold 10,848 kilogram-equivalent of cannabis domestically and internationally during the last quarter but reported a 30 percent decrease in the net price-per-gram to $3.25, the Financial Post reports. The drastic drop in per-gram prices led to a net loss of $35.7 million for the quarter, which ended September 30, up from their $18.7 million net loss a year ago.
The company’s revenue was up $12 million for the quarter to $67.8 million, which CEO and President Brendan Kennedy said “reflects positive business trends” paired with the firm’s “sequential gross margin expansion.”
Just 30 percent of Tilray’s total revenue for the quarter was derived from adult-use sales – a 2 percent decline from the previous quarter.
Cronos Group Inc., another licensed producer in Canada, sold more than 3,000 kilograms of cannabis during the quarter with revenues of $12.7 million; however, the majority of those sales came from wholesaling to other licensed companies rather than private and provincial-run retailers, according to the report.
The company reported a per gram price of $3.75, which is 42 percent lower than three months ago. Cronos recorded an overall profit of $788 million for the quarter but that was mostly due to proceeds from a one-time $835 million revaluation of derivative liabilities. Their net revenue was 25 percent higher than the previous quarter, while the company’s adjusted gross margins fell 12 percent to 41.5 percent, according to the Post.
Organigram Holdings reported a 34 percent decline in net revenues to $16.3 million and forecast a write-off of $3.7 million due to “product returns and adjustments” the report says.
The figures for a few of the nation’s largest companies – financial reports for Canopy Growth Corp. and Aurora Cannabis are due out later this week – come about a month before Canadian retailers are expected to begin selling edibles and alternative cannabis products, which could be a boon to the bottom lines for licensed producers throughout the Great White North.
In July, a Statistics Canada report found that illicit cannabis products cost, on average, about $4.72 less than their legal counterparts and that 59 percent of cannabis consumers in the nation bought cannabis illegally at some point during the year.
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