Tilray jumps on windfall profit and distribution deal with Whole Foods

By Dhirendra Tripathi

Investing.com — Tilray (NASDAQ:) stock soared 12% in premarket trading on Wednesday after the cannabis producer reported a surprise third-quarter profit.

The company’s distribution partnership with supermarket chain Whole Foods, which will sell hemp powders produced by its subsidiary Manitoba Harvest, also contributed to the gains.

Tilray said it is on track to hit its goal of $4 billion in revenue by the end of fiscal 2024.

Quarterly net increased 23% to $152 million, driven by cannabis revenue growth of 32% to $55 million, a 64% increase in alcoholic beverage revenue of $20 million and welfare revenue of $15 million.

Tilray said its merger with Aphria (NASDAQ:) has generated $76 million in savings to date. It plans to hit a synergy goal of $80 million by the end of May, five months ahead of schedule.

The company said international cannabis revenue soared more than 4,000% from the year-ago quarter, with market share in Germany, Europe’s biggest market for the item, nearly 20%. .

Tilray said Whole Foods will market the brand’s Hemp + Matcha and Supergreens powders exclusively at its North American locations.

Net earnings for the quarter were $52.5 million with adjusted EBITDA of $10.1 million, making it the twelfth consecutive quarter of positive adjusted EBITDA.