What happened
Shares of Tilray (TLRY 5.22%) jumped 13.6% on Monday after the cannabis company reported a significant improvement in its operational and financial results.
So what
Tilray's net revenue climbed 20% year over year to $155 million in its fiscal 2022 second quarter, which ended on Nov. 30. The gains were driven in part by the company's expansion into alcohol and hemp-based wellness products.
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However, an oversupply of cannabis in its core Canadian market forced Tilray to cut prices. That pressured its gross profit, which fell 7% to $32.8 million.
Still, Tilray's cost-reduction program is progressing ahead of schedule. Management now expects to realize a total of $100 million in savings by 2023, up from a prior forecast of $80 million.
All told, Tilray's net income improved to $6 million, compared to a net loss of $89 million in the year-ago period. The marijuana company also generated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $13.8 million. That marked the 11th straight quarter that Tilray posted positive results for this key metric of operational performance.
Now what
The cannabis leader also announced its plans to change its name to Tilray Brands, to reflect its desire to become a "global consumer packaged goods powerhouse." The company intends to bolster its Manitoba Harvest hemp and CBD (cannabidiol) wellness division and SweetWater craft brewing brand via distribution and innovation investments. Management says the moves will further Tilray's international expansion and prepare the company for the potential federal legalization of cannabis in the U.S.
