Tilray (TLRY) CEO Brendan Kennedy sees the light when it comes to finally reaching profitability.
With Tilray’s stock off about 90% from its intraday high hit in September 2018, now is a good time for Kennedy to start sharing firmer dates with investors on when profits will arrive in any form.
“In Canada, we can be profitable in the next quarter or two. In Europe, Portugal, Germany definitely in the next two to three quarters. And then individual countries will take a little bit longer,” Kennedy said on Yahoo Finance’s The First Trade.
Kennedy downplayed when Tilray would, overall as a company, be profitable.
“We see two countries —Uruguay and Canada —that have legalized adult use marijuana. We have got 194 countries to go,” Added Kennedy. “We have 41 countries that have legalized medical use. That’s only 20% of the countries in the world — that will double over the next two to three years. It’s a high growth industry. It’s early days. We continue to invest for the long-term opportunity.”
Kennedy says there are several profit drivers ahead for investors to consider. He points to new regulatory changes that go into effect in Canada later this year that will allow Tilray to release new CB-infused beverages (via a partnership with Anheuser-Busch InBev (BUD)) and vapes, to name a few. The company is also in an increasingly better supply position in the important Canadian market, as it links up with more independent growers and starts cultivating its own plants.
And, production to a host of European countries via a new facility in Portugal will begin shortly.
The timing couldn’t be better for these various initiatives.
Despite nearly quadrupling its revenue this year, Tilray has racked up $60.4 million in operating losses as it invests in its expansion plans. A year ago at this time Tilray’s operating losses amounted to $14.7 million.