The merger between Tilray and Aphria has served the company well
The offerings on the menu may whet the appetite of many consumers. Something similar happened to investors after seeing the excellent financial results that Tilray shared regarding its latest earnings report. This is the first time the Canadian cannabis giant has announced an earnings report since the merger with Aphria, and to meet the expectations of many, the numbers grew as much as a well-grown cannabis leaf.
The increase in both fourth quarter and full fiscal year 2021 revenues is a clear indicator that Tilray “is doing all it takes to lead the global cannabis industry with low production costs, leading brands, a well-developed distribution network, and unique partnerships,” CEO Irwin D. Simon proclaimed.
Tilray, which is headquartered in New York and Leamington, Ontario, left more than a few mouths agape after reporting a fourth-quarter 2021 revenue increase of 25% to $142.2 million from $113.5 million in the prior-year quarter. Net marijuana revenue was no slouch either, as it posted a 36% growth to $53.7 million.
The company also saw a 27% increase in its net revenue, reaching $513.1 million during 2021, a big difference from the $405.3 million in 2020. It should be made clear that these financial results are also including a quarter of the former Aphria, which was until May, and one month of Tilray before formalizing the merger.
This months-long transaction was finally finalized and formalized in May, and the results seem to be what many expected. If the company continues on this path, experts believe it could generate approximately $80 million in annual pre-tax cost synergies within the next eighteen months in its areas of expertise, including production and cultivation, sales and marketing, cannabis purchasing, and corporate products and expenses.