Tilray (TLRY) +1.23%, Canadian pharmaceutical and cannabis company is giving its investors some good news. The company announced that it made a net profit in the quarter to November 30, compared to a loss a year earlier. In this period the revenue of Tilray increased by about 20%, to $155 million.
Shares of this company soared nearly 20% on Monday.
Such positive figures can be the result of a diversification into alcohol and wellness products, which the company has recently introduced.
The takeover of the Canadian cannabis provider Aphria, which took place in May last year is also likely to result in success. The company expects to achieve its original annual cost reduction target of $80 million ahead of schedule and realize additional synergies of $20 million.
Many manufacturers in Canada are struggling to achieve profits, while once inflated valuations have fallen across all sectors. Like others looking to enter the more lucrative American market, Tilray is pinning its hopes on the vague prospect of federal legalization. But the sector is becoming increasingly competitive. Not surprisingly, investors are grasping for any good news.
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*Stock percentage taken on 12.01.2022 at 08:50.
*Lam, Sharon (10. January 2022). Reuters: Tilray gives investors a whiff of good news. Last viewed on 12.01.2022 on https://www.reuters.com/breakingviews/tilray-gives-investors-whiff-good-news-2022-01-10/
