- Total kilogram equivalents sold additional than tripled to five,588 kilograms from 1,514 kilograms in the prior year period.
- Typical net promoting value per gram decreased to $four.61 (C$six.12) compared to $six.38 (C$eight.36) in the prior year period. The typical net promoting value excluding excise taxes was $three.92 (C$five.20) per gram for the second quarter of 2019. The lower was due to a lowered mix of greater priced extract merchandise and a higher mix of adult-use income, which are at reduced costs per gram compared to other channels.
- Gross margin improved sequentially to 27% from 23% in the prior quarter. Gross margin in the second quarter of 2018 was 43%. Gross margin continues to be impacted by improved fees incurred with the ramping up of cultivation facilities in Canada and Portugal and acquiring third celebration provide. Meals solution margins have been also impacted by a $1.four million non-money charge associated to buy accounting for the fair worth of inventory. Excluding this buy accounting charge, gross margin was 30% for the quarter.
- Net loss for the quarter was $35.1 million or $.36 per share compared to a loss of $12.eight million or $.17 per share for the prior year period. The adjusted net loss for the quarter was $31.two million or $.32 per share for the second quarter of 2019. The adjustments to the net loss are non-recurring acquisition associated charges and a non-recurring non-money charge associated to buy accounting for the fair worth of inventory. Adjusted EBITDA was a loss of $17.9 million compared to a loss of $four.7 million the prior year period. The improved net loss and Adjusted EBITDA declines have been mainly due to the improve in operating costs associated to development initiatives, interest expense from our convertible notes, the addition of Manitoba Harvest and Natura organizations, and the expansion of international operations.
Small business Highlights
- Signed Letter of Intent (LOI) with Privateer Holdings, Inc. to extend lock-up for up to two years and present for orderly release of the 75 million Tilray shares held by Privateer.
- Important capacity expansion:
- Expanded international export capacity with typical manufacturing license and Very good Manufacturing Practices (GMP) certification for EU Campus that permits Tilray Portugal to manufacture and export GMP-certified dried cannabis as an active substance for medicinal merchandise.
- Elevated international export capacity with an added 20 hectares (50 acres) of outside cultivation space in Portugal via a Definitive Agreement with Esporão, one particular of the biggest and most sophisticated agricultural organizations in Portugal. This agreement will expand Tilray’s total production and manufacturing footprint to three.four million square feet worldwide.
- Announced an investment of $32.six million to improve our Canadian production and manufacturing footprint by 203,000 square feet across 3 facilities in Nanaimo, British Columbia, Leamington, Ontario, and London, Ontario.
- Important international market place developments:
- Imported GMP-certified completed healthcare cannabis oil options into Ireland for nationwide distribution beneath the Health-related Cannabis Access Programme.
- Manitoba Harvest launched a Broad Spectrum Hemp Extract line that is Commonly Recognized as Secure (GRAS) in the United States, marking Tilray’s very first entry into the U.S. CBD market place beneath this brand.
- Expanding our brand portfolio:
- Acquired Smith & Sinclair, an revolutionary U.K.-primarily based confectionary business that will introduce CBD-infused customer merchandise exactly where regulations permit.
- Clinical analysis developments:
- Announced assistance of two new clinical research: a pilot study led by Murdoch Children’s Analysis Institute (MCRI) in Melbourne, Australia, to evaluate the feasibility and acceptability of a bigger randomized placebo-controlled trial of cannabis extract as a type of therapy for minimizing Serious Behavioral Difficulties (SBP) in pediatric sufferers with Intellectual Disabilities (ID) and a study with McGill University Well being Centre’s Division of Infectious Illnesses and Chronic Viral Illness in Quebec, Canada to examine the effectiveness of healthcare cannabis on immune activation in People today Living with HIV.
- Imported an initial shipment of healthcare cannabinoids into the United States, with approval from the U.S. government, to assistance two clinical trials led by NYU College of Medicine for sufferers with Alcohol Use Disorder and Post-Traumatic Anxiety Disorder with Alcohol Use Disorder.
- Expanded worldwide senior leadership group:
- Appointed Kristina Adamski as Executive Vice President of Corporate Affairs, globally overseeing communications, government affairs and corporate social duty.
- Strengthened European leadership group with the appointment of Arne Wilkens as Vice President, Small business Expansion, Europe José Tempero as Health-related Affairs Director, Europe Maike Gerlach as Vice President, Advertising and marketing, Europe Nadja Frenzel as Vice President, Industrial Improvement, Europe and Natalie Bucceri as Director, Worldwide Portfolio Expansion.
The Business will host a conference contact to talk about these outcomes right now at five:00 p.m. ET. Investors interested in participating in the reside contact can dial 877-489-6528 from the U.S. and 629-228-0736 internationally. A phone replay will be offered roughly two hours soon after the contact concludes via Tuesday, August 27, 2019, by dialing 855-859-2056 from the U.S., or 404-537-3406 from international areas, and getting into confirmation code 1489081.
There will also be a simultaneous, reside webcast offered on the Investors section of the Company’s web site at www.tilray.com. The webcast will be archived for 30 days.
Far more data on Q2 earnings can be identified on ir.tilray.com.