Cannabis company Tilray reports US$52.5M profit as market share slips again

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Tilray Brands Inc. saw its share of the Canadian retail cannabis market slip recently, but says it is feeling encouraged because the recent dips are less significant than it previously experienced.

Blair MacNeil, the Leamington, Ont. pot company's president of Canadian operations, said Wednesday that in the company's third quarter, its retail market share fell to 10.2 per cent from 12.8 per cent.

"Notably, the rate of decline in the month of February is the lowest we've experienced in over a year -- an encouraging first step, which leads up to believe that our pricing and marketing adjustments are paying dividends." "However, the Canadian cannabis market remains crowded and oversaturated with 800 licensed producers and 3,200 retail stores," he said. "This has led to an oversupply of products and price compression."

Tilray's earnings for the three months ending Feb. 28 amounted to nine cents per share US, up from a loss of US$1.03 per share the year before. "We will be rationalizing them to focus our innovation, investments and distributor resources on the brands with the scale and unique value proposition which serves consumer needs and helps improve margins," MacNeil said.

 

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