Cannabis producer Tilray posts surprise quarterly profit

Canadian cannabis producer Tilray Inc has posted a surprise quarterly profit.

Tilray seems to have been helped by savings achieved from its reverse-merger with Aphria.

Tilray also pledged an additional $20 million in cost cuts over the $80 million originally planned from the merger.

Tilray and Aphria combined in May 2021, creating the world’s largest cannabis producer by sales.

On an adjusted basis, Tilray posted a profit of 3 cents per share in the second quarter ended Nov. 30, while analysts were expecting a loss of 9 cents per share, according to Refinitiv IBES estimates.

The company’s revenue grew 20% to $155 million, but fell short of analysts’ average estimate of $170.55 million.

The company posted a net income of $6 million, compared with a loss of $89 million a year earlier.