Earnings Results: Tilray pot sales jump ahead of Aphria merger, stock gains more than 10%

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Tilray Inc. narrowed losses and boosted revenue in the final three months of 2020, as it prepared to merge with fellow Canadian marijuana company Aphria Inc.

Tilray TLRY, -9.01% reported a loss of $3 million, or 2 cents a share, after reporting losses of more than $200 million in the same quarter a year ago. The company said it was profitable on an adjusted-Ebitda basis, producing $2.2 million by that metric.

Tilray reported total sales of $56.6 million, or $50.7 million when accounting for excise taxes, after posting revenue of $46.9 million a year prior, or $42.5 million after excise taxes. Analysts on average predicted a loss of 14 cents a share on sales of $56 million, according to FactSet, with a smaller projection for adjusted Ebitda of $300,000.

For the full year, Tilray sales increased to $210.5 million in 2020 from $167 million in 2019 without accounting for excise taxes, while losses narrowed to $271.1 million, or $2.15 a share, from $321.2 million or $3.20 a share. Tilray reported an adjusted-Ebitda loss of $30.3 million in 2020, an improvement from an adjusted loss of $89.8 million in 2019.

“These results required hard work and dedication and I sincerely appreciate everything the Tilray team has done to transform our business during 2020,” Tilray Chief Executive Brendan Kennedy said in a statement. “We now look forward to the beginning of the next chapter in our corporate journey.”

Tilray and Aphria APHA, -5.15% have agreed to merge in a deal they say will create the world’s largest cannabis company by revenue, with the Tilray name and ticker remaining after the deal is complete. Tilray said in Wednesday’s release that the deal should close in the second quarter.

For more: To profit from planned pot merger, analyst says to buy Aphria

Tilray shares jumped more than 10% in after-hours trading Wednesday, after the stock dove 9% in the regular session. Shares have more than quadrupled in the past three months, gaining 337% as expectations for the merger as well as hopes for federal marijuana legalization in the U.S. have juiced pot stocks.

Aphria stock also gained in late trading, adding more than 8% after rising more than 227% in the past three months. For comparison, the S&P 500 index SPX, -0.03% has gained 9% in that time.