By Yasin Ebrahim
Investing.com - Tilray plunged in after-hours trading on Monday after reporting a wider-than-expected loss as a glut of inventory triggered an $18.6 million writedown in the second quarter of the year.
Tilray (NASDAQ:TLRY) fell more than 8% in after-hours trade.
The company reported a net loss of $81.7 million, or a loss of 66 cents per share, compared with a net loss of $36.3 million, or 37 cents per share, in the second quarter of 2019. Revenue rose 10%, to $50.4 million. That compared with consensus estimates from Investing.com for a loss of 33 cents on revenue of $54.77 million
"The increased net loss was primarily due to a $18.6 million inventory valuation adjustment, a charge of $28.4 million for impairment of assets, $11.2 million impact of the change in fair value of warrant liability, offset by $13.3 million of foreign exchange gains due to the strengthening of the Canadian dollar," the company said.
Gross margin decreased to -10.7% from 27% in the second quarter of 2019 and 21% in the first quarter of 2020.
"With our significant cost cutting and balance sheet actions behind us, we have positioned Tilray to enter the second half of 2020 in a stronger position so we can remain focused on achieving profitable growth in all our markets and deliver break-even or positive Adjusted EBITDA in the fourth quarter of 2020.” said Brendan Kennedy, Tilray’s chief executive officer.