Tilray, Inc. (Nasdaq: TLRY) reported financial results for the first fiscal quarter ending August 31, 2021 with net revenue increasing 43% to $168 million from $117 million in the same time period in 2020. Tilray missed the average analyst estimate for revenue of $172 million according to Yahoo Finance. Tilray said the increase in revenue was driven by a 38% growth in net cannabis revenue to $70 million, net beverage alcohol revenue of $15 million following the SweetWater acquisition on November 25, 2020, and wellness revenue of $15 million from Manitoba Harvest.

Still, the company reported an increase in the net losses to $34.6 million from last year’s net loss of $21.7 million. The company met the average earnings estimate from analysts which was for a loss of $0.08 per share. The company noted in its earnings statement that it had a cost-saving synergy of $55 million that was achieved on a run-rate basis to date, with actual cash savings close to $20 million. Tilray also said it was on track for at least $80 million in cost savings from the Aphria and Tilray business combination synergies.

“Tilray’s first quarter 2022 results affirm that, amid the paradigm shift towards global cannabis legalization, we are unquestionably executing against two key objectives,” said Irwin D. Simon, Tilray’s Chairman, and Chief Executive Officer. “The first is maximizing near-term profitability through leadership in both higher-margin international medical markets and in Canada, complemented by incremental growth at SweetWater and Manitoba Harvest in the U.S. These efforts are augmented by the cost benefits of our increased scale that we are realizing through our integration process. The tangible results include our tenth consecutive quarter of positive adjusted EBITDA and meaningful net revenue growth despite continued impacts from COVID-19 in Canada as retail cannabis stores only began opening in mid-June.”

Beverage Business

Tilray continues to build out its beverage business, which now accounts for 9% of the company’s revenue. In the U.S., Tilray has a strong consumer packaged goods presence with SweetWater, the 11^th largest craft brewer in the nation. In July, SweetWater Brewing Company announced the launch of 420 Imperial IPA, the first line extension of its flagship 420 brands. SweetWater also announced a new Colorado Brewery and the opening of SweetWater Mountain Taphouse at Denver International Airport.

International Business

Tilray noted that 11% of its revenues in the quarter came from the international business which didn’t exist a year ago. It says it is the market leader in Germany with medical cannabis extracts. In July Tilray completed and shipped the first successful EU GMP-certified medical cannabis harvest grown in Germany for German distribution.

Mr. Simon continued, “The second objective is to fully realize the promise and potential of Tilray by capitalizing on the nearly $200 billion global cannabis market opportunity. We believe we are ideally positioned to succeed due to our global consumer-packaged goods expertise and scale, our diverse portfolio of brands, our reputation as a trusted supplier of high-quality cannabis, battle-tested leadership, and a relentless focus on driving sustainable shareholder value. We look forward to accelerating our momentum as we build the leading CPG business in the global cannabis industry.”