Tilray Brands Inc.’s stock rose 5% in premarket trading on Tuesday after the cannabis and beverage company’s adjusted loss beat estimates on record revenue.
Tilray
TLRY,
said its second-quarter loss narrowed to $46 million, or 7 cents a share, from a loss of $62 million, or 11 cents a share, in the year-ago quarter.
Its adjusted loss was $2.7 million, or zero cents a share, which beat the FactSet consensus estimate for a loss of 5 cents a share.
Revenue increased by 34% to $193.8 million, just ahead of the analyst estimate of $193.7 million.
“We grew revenue, enhanced our capital structure, and realized operating synergies while strengthening Tilray Brands’ position as the No. 1 cannabis operation and brand portfolio in Canada by sales volume and market share,” Chief Executive Irwin Simon said in a statement.
The company said it expects total cost savings related to its Hexo and Truss integration of $30 million to $35 million in the current fiscal year.
On the heels of buying Montauk Brewing Co. last year and other alcoholic beverages for the U.S. market, Tilray said it’s now the fifth largest craft beer brewer in the U.S.
With a 117% increase in alcohol net revenue to $47 million, Tilray said it’s poised to become a top 12 beverage-alcohol company.
Ahead of Tuesday’s move, Tilray’s stock was down 15.8% in the past year, compared to a 37.4% increase by the Nasdaq.
